Clean energy push in Union Budget 2025-26 to tackle air pollution

As air pollution continues to strain India’s public health and healthcare systems, experts are calling on the government to use the Union Budget 2025-26 to address the interconnected challenges of environmental degradation and health crises.

A 2022 Lancet report attributes an estimated 1.7 million premature deaths annually in India to air pollution, with respiratory and cardiovascular diseases being major contributors. With approximately 33 crore vehicles on Indian roads, vehicular emissions remain a leading cause of pollution. Experts see the forthcoming budget as an opportunity to implement measures to curb emissions and mitigate the health burden.

“Auto LPG offers a practical solution to the pollution crisis by significantly reducing emissions of particulates, carbon monoxide, nitrogen oxides, and hydrocarbons,” said Suyash Gupta, Director General of the Indian Auto LPG Coalition. “Reducing the GST on Auto LPG from 18% to 5% can make it more competitive and foster adoption. Incentives for Original Equipment Manufacturers (OEMs) to produce more Auto LPG-compatible vehicles will expand consumer options and support sustainable mobility,” Gupta added.

India is among the top five nations most affected by air pollution, according to the State of Global Air Report 2023. The World Bank estimates the economic cost of pollution-related illnesses to be 1.4% of the country’s GDP annually, highlighting the urgency of transitioning to cleaner energy solutions.

The healthcare sector is also advocating for sustainability as part of the solution. “Embedding sustainability into healthcare reforms is equally important. Climate-conscious policies, such as green hospitals and renewable energy-powered facilities, align with India’s climate action goals while enhancing patient care,” said Dr Azad Moopen, Founder and Chairman of Aster DM Healthcare.

Start-ups are expected to play a pivotal role in advancing clean energy and sustainability initiatives. Arun Agarwal, Chairman of Track Pack Innovation, emphasised the need for government support to accelerate this transformation. “Start-ups are leading the way in developing green technologies, renewable energy solutions, and sustainable urban infrastructure. Tax incentives, grants, and funding can speed up their adoption, driving a collective shift towards a cleaner future,” he said.

Air pollution-related diseases, including chronic obstructive pulmonary disease (COPD), lung cancer, and asthma, already account for a sizeable portion of hospital admissions. With the healthcare system under pressure, experts argue that policies promoting alternative fuels like Auto LPG, incentivising green start-ups, and integrating sustainability into healthcare infrastructure could address these critical issues effectively.