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Farmer carrying wood in Chimtipur Village in MP Photograph: (Ground Report)
The Finance Ministry allocated ₹3,412.82 crore to the Ministry of Environment, Forest and Climate Change (MoEFCC) in the Union Budget 2025, reflecting a 9% increase from ₹3,125.96 crore the previous year. Finance Minister Nirmala Sitharaman presented the budget in Parliament on February 1, 2025.
"While the budget indicates investing in a climate-friendly economy, Sachchida Nand Tripathi, a professor and sustainability expert at IIT Kanpur, noted that more focused initiatives for air pollution, river rejuvenation, and adaptation measures beyond agriculture would strengthen India's vision for a greener future."
MoEFCC budget increased by 9%
In the interim budget of February 2024, ₹3,265.53 crore was estimated for the ministry for 2024-25. On July 23, 2024, the central government allocated ₹3,330.37 crore, later revised to ₹3,125.96 crore, as per the Union Budget 2025.
The 2025-26 budget emphasises increased funding for ecosystem conservation, wildlife protection, and expanding forest cover. The National Mission for a Green India, aimed at expanding forest cover, protecting existing forests, and preventing wildfires, will receive ₹220 crore in 2025-26, up from ₹160 crore last year.
Similarly, funding for natural resource and ecosystem conservation has increased from ₹30 crore to ₹50 crore. The biodiversity conservation budget has nearly tripled from ₹3.5 crore to ₹10 crore.
The government allocated ₹35 crore for conserving aquatic ecosystems, up from ₹23.5 crore in 2024-25. Funding for Project Tiger and Project Elephant, which focus on protecting these animals and their habitats, increased from ₹245 crore to ₹290 crore.
During the budget presentation, Sitharaman emphasised "clean-tech manufacturing for climate-friendly development." She highlighted initiatives for climate-resilient agriculture and the national mission for high-yielding seeds, designed to develop crops adaptable to extreme climates. Over a hundred climate-proof seeds were released in July 2024.
The Jal Jeevan Mission (JJM), aimed at providing safe drinking water, has been allocated ₹67,000 crore. The program has been extended until 2028 to ensure 100% coverage.
While some budgetary allocations increased, others faced reductions. The National Coastal Mission’s budget dropped from ₹50 crore to ₹8 crore last year and ₹2 crore this year. In contrast, the Forest Survey of India (FSI) budget increased from ₹46 crore (revised to ₹51.93 crore) to ₹54.13 crore. The National Zoological Park received ₹44.32 crore, up from ₹23 crore (revised to ₹30.54 crore) last year.
For conservation efforts, the ‘Conservation of Natural Resources and Ecosystems’ spent ₹30 crore of the ₹43.5 crore allocated last fiscal year. This year’s allocation is ₹50 crore. Low spending was noted in ‘Biodiversity Conservation’ (₹3.5 crore of ₹5 crore allocated) and ‘Conservation of Aquatic Ecosystems’ (₹26.5 crore of ₹38.5 crore allocated). The budget for ‘Integrated Development of Wildlife Habitats’ remained at ₹450 crore, though only ₹400 crore was spent last year.
In Financial Year (FY) 2023-24, a total of ₹126.09 crore was spent on remediation and waste disposal efforts related to the Bhopal Gas Leak disaster. However, for FY 2025-26, the government has allocated ₹20.85 crore, specifically for ex-gratia payments to victims and salaries for the Bhopal Welfare Commission staff.
Budget increases for environment, cuts for coastal mission
The ‘Forest Fire Prevention and Management’ scheme had a budget of ₹50 crore last year, with only ₹36 crore spent. The allocation remains unchanged at ₹50 crore this year.
Similarly, the National Coastal Mission spent only ₹8 crore against ₹50 crore last year, resulting in a budget cut to ₹2 crore for this fiscal year.
The ‘Environment Knowledge and Capacity Building’ budget increased to ₹102.7 crore from last year’s ₹78.34 crore (revised to ₹99.94 crore). In the ‘Environment Education, Awareness, Research, and Skill Development’ component, only ₹65 crore was spent from the ₹87.4 crore allocated last fiscal year. The current budget sets aside ₹101.96 crore for this initiative.
Several autonomous institutions saw budget changes. The Indian Council of Forestry Research and Education (ICFRE) and the Wildlife Institute of India (WII) received a 20% budget increase, while the Indian Institute of Forest Management (IIFM) faced a reduction from ₹13 crore to ₹10 crore.
Finance Minister Nirmala Sitharaman made significant announcements regarding nuclear energy, emphasising its role in India’s clean energy transition. She outlined a goal of developing at least 100 GW of nuclear energy by 2047 under the Nuclear Energy Mission for Viksit Bharat. To encourage private sector participation, she proposed amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act, which currently limit private investment in the sector.
However, despite these ambitious plans, the budget for the Department of Atomic Energy (DAE) was reduced by ₹402 crore, and the allocation for the Nuclear Power Corporation of India Ltd (NPCIL) was cut by ₹472 crore. The push for private investments follows reports that India is seeking $26 billion from major companies like Reliance, Tata Power, Adani, and Vedanta to expand nuclear energy generation by 2040.
The budget also introduced a Nuclear Energy Mission for research and development of Small Modular Reactors (SMRs), with an outlay of ₹20,000 crore and a target of operationalising at least five indigenously developed SMRs by 2033. While this marks a shift towards nuclear innovation, experts have raised concerns about safety, costs, and the overall direction of India’s energy policy.
The National Institute of Wind Energy, Bioenergy, and Solar Energy institutions saw increased allocations, with their total budget rising from ₹60 crore (revised to ₹62 crore) to ₹73.4 crore. The budget for the Commission for Air Quality Management nearly doubled from ₹16.23 crore to ₹38.98 crore.
The MoEFCC has seen consistent budget increases over the years. The increase follows a steady growth trend, with the budget rising from ₹2,675 crore in 2018-19 to ₹3,412.82 crore in 2025-26.
Policy experts have raised concerns over the lack of sufficient environmental funding in the Union Budget 2025-26. While the budget prioritises clean energy, experts argue that it overlooks critical environmental challenges like air and water pollution, waste management, and industrial pollution.
Dr. Chandra Bhushan, president and CEO of iForest, stated, “The focus on clean energy is a positive step, but it misses the opportunity to address critical environmental issues such as air and water pollution, waste management, and industrial pollution.”
Dr. Shailly Kedia, associate director for sustainable development and outreach at TERI, pointed out that the Ministry of Environment, Forest, and Climate Change received only a 2.5% increase in its budget, reaching ₹3,412.82 crore, while the overall national budget grew by over 7%.
She added, “Key sustainability issues—such as waste management, coastal resilience, and biodiversity—are absent from the Output Outcome Framework for 2025-26. India’s economic growth must not come at the expense of environmental collapse.”
Experts also emphasised the need for more targeted initiatives to address air pollution, river rejuvenation for water security, and climate adaptation beyond agriculture. They believe such measures would have further strengthened India’s vision for a cleaner and greener future.
Crop insurance faces budget cuts; adaptation fund ignored
The Union government’s flagship crop insurance scheme, ‘Pradhan Mantri Fasal Bima Yojana’ (PMFBY), received its lowest allocation in seven years in the Union Budget 2025-26, despite the Economic Survey acknowledging increasing extreme weather events harming crop yields. The scheme was allocated ₹12,242.27 crore in 2025-26, a sharp reduction of nearly 23% from the 2024-25 revised estimates of ₹15,864 crore.
Harjeet Singh, climate activist and founding director of the Satat Sampada Climate Foundation, observed, “While the budget acknowledges the need to boost agricultural production and resilience, it falls short where it matters most—adaptation funding. Without real investment in climate adaptation, farmers will be left defenceless against increasingly erratic and extreme weather. The livelihoods of millions are at serious risk.”
Launched in February 2016, PMFBY aims to provide insurance against crop failure and stabilise farmers’ income. The government’s economic survey, released before the budget, emphasised PMFBY’s role in protecting farmers against natural calamities, pests, and diseases. However, the budget cut raises concerns about its effectiveness.
Government data shows a decline in insurance claims paid to farmers, from ₹29,444.66 crore in 2018-19 to ₹10,391.39 crore in 2023-24. Farmers are disillusioned with the scheme due to non-payment or delayed payment of claims.
Meanwhile, extreme weather, particularly heatwaves, has increased significantly. Between 2022 and 2024, India experienced heatwaves on 18% of days, compared to 5% in 2020 and 2021. Reports suggest extreme weather caused more crop damage in 2024 than in the previous two years.
The reduction in PMFBY’s allocation comes as climate change-driven disasters worsen. This move may indicate the government’s shifting priorities or dissatisfaction with the scheme’s implementation, but it raises concerns about the security of India’s farmers against future climatic shocks.
While praising the push for greener energy, experts criticised the lack of financial support in the climate adaptation sector critical to millions in vulnerable areas.
An exception might be the project supporting agricultural practices in climate-impacted districts, the Pradhan Mantri Dhan-Dhaanya Krishi Yojana, targeting 100 low-productivity districts by boosting output, promoting crop diversification, and enhancing storage.
India’s Marine Sector
FM Nirmala Sitharaman emphasised tapping into India’s marine sector by creating a sustainable fisheries management framework, focusing on the Andaman and Lakshadweep islands. While some fish workers view this as economic growth, others are concerned about its impact on marine ecosystems and struggling fish stocks due to climate change and overfishing.
A 2022 report from the Central Marine Fisheries Research Institute (CMFRI) revealed over 4% of India’s fish stocks are overfished, and 8.2% are beyond sustainable levels.
Critics worry that the government’s focus on unlocking the fishing potential of these island clusters could worsen the situation. Sustainable fishing methods like pole-and-line fishing in Lakshadweep and traditional fishing in the Andamans have supported local communities while preserving fish stocks.
Experts fear that large corporations may enter, leading to overfishing and resource depletion. Fish stocks, including mackerel and sardines, are declining along India’s coasts, and climate change is worsening it, with fish moving to cooler waters.
The union budget 2025-26 shows the government’s commitment to environmental protection, with a 9% increase in funding for the MoEFCC. More money has been allocated for forest conservation, wildlife protection, and air quality management , highlighting efforts toward a greener future.
However, the budget also has some gaps. Funding for coastal protection and crop insurance has been reduced, raising concerns about how well farmers and coastal communities can cope with extreme weather. While the push for marine sector growth could boost the economy, experts worry it may harm fish stocks and marine ecosystems.
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