India's Economic Roadmap: Fiscal Execution, Clean Energy Expansion, and AI Impact

Union Finance and Corporate Affairs Minister Nirmala Sitharaman and Union Minister for New and Renewable Energy Pralhad Joshi led discussions on India’s economic, energy and policy roadmap on the second and final day of Business Standard Manthan 2026 at Bharat Mandapam in New Delhi on Wednesday, as speakers across government and industry examined fiscal execution, clean energy expansion and the role of artificial intelligence across sectors.The day’s sessions focused on food and energy security, digital markets regulation and the impact of artificial intelligence on both industry and the creative economy, bringing the two-day summit to a close with a forward-looking assessment of India’s growth trajectory.Sitharaman flags gaps in spending uptake, defends policy stanceUnion Finance Minister Nirmala Sitharaman said unused budgeted expenditure often reflected political considerations at the state level, even as she defended the Centre’s approach to disinvestment, private sector participation and scrutiny of Chinese investment.Speaking at the summit, Sitharaman said India’s macroeconomic indicators were broadly in line with Budget projections but implementation challenges persisted amid global uncertainty. She pointed to the Centre’s special assistance scheme for capital investment by states as an example of uneven uptake.“We’ve given this special assistance to states for capital investors, which is a 50-year money, given interest-free. But in some reform-related steps, not even one taker, or in some a few takers; in some others, everybody is in,” she said.Also ReadStay the course on US, seize manufacturing moment at home: Amitabh KantAI most democratic tech in film industry, says Shekhar Kapur at BS ManthanIndia must build its own AI models and strengthen data sovereignty: ExpertsIndia's strategic autonomy needs military power, say experts at BS Manthan'Electro' states will prevail over 'petro' states: ReNew CEO at BS ManthanThe finance minister also criticised last week’s protest by Congress workers at the India AI Impact Summit 2026, questioning its intent and saying the party should be “ashamed” of the demonstration.A group of Indian Youth Congress workers had staged a protest inside the summit venue by removing their shirts to reveal slogans against the government and the India–US interim trade deal before being escorted out. Authorities are examining the incident, including possible funding for the protest material.Joshi maps path to 500 GW non-fossil capacity by 2030Union Minister Pralhad Joshi outlined India’s progress in expanding non-fossil fuel capacity and set out a roadmap to achieve 500 gigawatts of such capacity by 2030.Speaking at the summit, Joshi said more than 50 per cent of India’s installed power capacity already came from non-fossil sources, placing the country ahead of schedule among G20 nations. He noted that solar capacity had risen from 2.8 GW in 2014 to 195 GW in renewable capacity excluding large hydro, with overall non-fossil installed capacity now at 267 GW.India added more than 50 GW in the last calendar year alone, the highest annual increase so far, he said, adding that scale had helped reduce tariffs and improve investor confidence. He said growth in rooftop solar, domestic manufacturing and storage infrastructure would support the next phase of expansion.Supply chain shifts offer opportunity if costs fall: KantFormer NITI Aayog chief executive Amitabh Kant said disruptions in global supply chains and the rapid evolution of artificial intelligence presented an opening for India, provided it addressed structural costs and competitiveness.“When cracks appear, it is an opportunity for an emerging market to rise,” Kant said, urging policymakers to move beyond ease-of-doing-business rankings and focus on lowering the actual cost of doing business. He added that India should build AI systems rooted in domestic data and local realities to shape global technology conversations.CCI steps up scrutiny of big tech and AI-driven marketsCompetition Commission of India Chairperson Ravneet Kaur said the rapid expansion of large technology platforms and artificial intelligence was reshaping competition dynamics, prompting closer regulatory attention.Speaking on Day 2 of the summit, Kaur said digital markets had become a central focus for the regulator, with concerns around potential anti-competitive practices such as self-preferencing, tying and bundling, anti-competitive agreements and unfair contractual terms. She said the emergence of AI had accelerated these trends and required proactive oversight.“The pace is so rapid that, as a regulator, we felt the need to understand what is happening on the AI front. We have conducted a market study on AI and competition. We are equipping ourselves to handle the issues that are likely to emerge very soon,” she said.Energy transition crosses inflection point, says SinhaSumant Sinha, founder and chief executive officer of ReNew, said the global shift towards clean energy had passed a point where reversal would be difficult, even amid geopolitical and economic turbulence.Speaking at the summit, Sinha said the transition had initially been driven by climate concerns but was now being propelled by energy security and affordability. “Climate change started the journey, while multiple such factors are now pushing it forward,” he said.He described the emergence of two global groupings: “petro states”, which are rich in fossil fuel resources, and “electro states” such as India and China that are accelerating electrification to reduce dependence on imported fuels.AI reshapes storytelling as summit concludesFilmmaker Shekhar Kapur closed the summit with a session onCinema in the Age of AI, reflecting on how artificial intelligence is reshaping filmmaking and creative expression.Kapur described AI as a transformative and democratising technology for the film industry, while cautioning that it remained widely misunderstood. “AI is the most democratic technology,” he said, adding, “AI is the most misunderstood word right now.”He said artificial intelligence operates through advanced predictability rather than unpredictability and described the current phase as one of rapid and sweeping change. “AI is nothing but change at an unprecedented pace,” he said.Summit concludes after two days of policy and industry dialogueWith discussions spanning fiscal policy, trade, infrastructure, energy transition, manufacturing, markets and artificial intelligence, the two-day Business Standard Manthan 2026 concluded on Wednesday after bringing together policymakers, industry leaders and experts to assess the opportunities and challenges shaping India’s future economic trajectory.