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Below the Reaction on Post-Budget By Dr. Kapil Garg, Managing Director, Asian Energy Services Ltd

“We applaud the Government and Hon'ble Finance Minister, Smt. Nirmala Sitharaman on presenting a favourable budget for the manufacturing and infrastructure segment. The announcement to invest in urea production capacity in Namrup, Assam is an excellent move since Assam’s abundant natural gas resources will not only benefit Oilmax in the long term but also open up significant natural gas demand in the region. This strategic initiative aligns with the government’s broader vision to drive industrial growth in eastern India while bolstering self-reliance in fertilizer production.

The budget’s robust focus on expanding waterway and canal infrastructure is set to transform industrial logistics, particularly for sectors like oil, gas, and petrochemicals. The creation of a substantial Maritime Development Fund and the expansion of regional connectivity through enhanced schemes will further streamline transport and trade, integrating remote areas into the national economy.

Key duty exemptions on critical minerals such as cobalt, lithium-ion battery scrap, lead, and zinc are poised to strengthen domestic manufacturing. The allocation for research, development, and innovation will accelerate advancements in energy efficiency aims to secure long-term energy stability.

The policies should attract private sector participation and foreign direct investment in energy projects, will enhance India’s energy security and reduce import dependency.

Furthermore, the reduction in income taxes and the rationalization of TCS and tax exemptions are expected to boost household spending power, fueling broader economic demand. Power sector reforms that incentivize improved electricity distribution and intrastate transmission capacity will further ensure a stable and efficient energy supply. The substantial provision of interest-free loans to states for capital expenditure underscores a strong commitment to long-term infrastructure development.

For MSMEs, increased investment and turnover limits will empower small and medium enterprises to scale up, innovate, and expand their global competitiveness, especially as they contribute significantly to India’s exports. Mining sector reforms, along with policies for recovering critical minerals from tailings, will further reinforce resource independence.

By promoting energy storage, grid modernization, and expanding strategic oil reserves, the government is laying the groundwork for a resilient, diversified energy mix. Export incentives and policy measures to integrate India into global energy markets will further enhance the country’s positioning as a key player in the sector.

Overall, this budget lays a strong foundation for sustained economic expansion, energy security, and industrial development. It creates a growth-oriented policy framework that will generate long-term value for industries such as oil, gas, and energy, while driving India’s journey toward a more self-reliant and sustainable future.”

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