- Union Budget 2026 may increase defence spending by 20-25% as per Saurabh Mukherjea
- Mukherjea predicts a decline in India's clean energy subsidies amid US fossil fuel push
- Ravi Dharamshi argues energy transition to renewables is inevitable and cost-effective
With the Union Budget 2026 just around the corner, top markets experts shared their divided opinions on whether or not the government will double down on renewable energy or pivot towards defence and fossil fuels.
As part of NDTV Profit's pre-budget town hall, Saurabh Mukherjea, Founder and CIO of Marcellus Investment Managers, argued that the global enthusiasm for green energy is waning, thanks to shifting policies of the US government under President Donald Trump. "I think across the world, green will go out of the window," he said.
“Green was a good thing whilst it lasted,” Mukherjea added. “If the country which accounts for 55% of global GDP is saying ‘drill baby drill,' then I doubt anybody else... can afford to be green oriented.”
Mukherjea went on to predict that the upcoming budget will see a 20-25% increase in the defence budget, which could come at the cost of climate goals.
“America is bending over backwards to double down on fossil fuels,” he said, adding that India's focus on subsidising clean energy “will gradually ebb.”
However, Saurabh's view was disputed by Ravi Dharamshi, Founder and CIO of ValueQuest Investment Advisors, who made the point that energy transition is inevitable.
“I completely disagree with that,” Dharamshi said. “An idea whose time has come cannot be denied.”
Dharamshi argued that green energy has already become a cheaper source of energy than traditional fuels, making the transition a matter of pragmatism rather than just policy.
“The levelized cost of energy produced through solar plus wind plus battery is going to be far cheaper than coal. It is already cheaper than coal today,” he said. “Why would you extract more expensive energy from the ground? Why would you depend on somebody else for your energy needs?”
Gautam Chhaochharia, Head of Global Markets India at UBS, sided with Dharamshi's argument on for renewables, noting that “globally also ex-US we haven't seen any pullback” in green initiatives.
“Solar etc. continues to be the theme globally, not just in India,” Chhaochharia concluded.
ALSO READ: 'Mother Of All Deals': PM Modi Announces India-EU Trade Agreement, Flags It As Global Game-Changer
Watch LIVE TV, Get Stock Market Updates, Top Business, IPO and Latest News on NDTV Profit.
