According to climate scientist Jayaraman Srinivasan at the Indian Institute of Science, Bengaluru, the budget shows that India is serious about reducing the effects of climate change. However, "it will take many decades of consistent policy to transition from coal, oil, and gas to renewables in order to meet the goal of net zero by 2070," he states. The announcement, according to senior government scientists, will also aid in setting the country's future research agenda.

On February 1, when she presented the nation's annual budget to parliament, finance minister Nirmala Sitharaman stated that the government is implementing programs to decarbonize numerous industries, including the construction, energy, and agricultural sectors. It pledged 19.7 billion rupees to make India a global producer and exporter of "green hydrogen," which is made by breaking down water into oxygen and hydrogen using renewable energy rather than fossil fuels. The hydrogen can then be used as fuel by other industries that use a lot of carbon, like making steel and cement.

The budget for the ministry of new and renewable energy will be 10.22 billion rupees, an increase of 48% from the previous year. However, the ministry of environment, forests, and climate change, which is in charge of crucial adaptation and mitigation programs, will receive approximately 30 billion rupees in 2022–23.

According to Tiju Thomas, a materials engineer at the Indian Institute of Technology Madras in Chennai, synergy between policymaking, industry, and research is necessary to increase the nation's production of low-emission hydrogen. According to Thomas, the time has come for India to step up its energy transition efforts.

However, Srinivasan points out that the nation must also increase its energy storage capacity in order to benefit from other forms of renewable energy, such as wind and solar, which are not always available.

Climate change is already bearing down on India. Between 1901 and 2018, the average temperature increased by approximately 0.7 °C, according to the first national assessment1 of climate change. According to an analysis that was released in November by the non-governmental organization Centre for Science and Environment in New Delhi, the nation experienced an extreme event nearly every day in 2022. Floods, landslides, and heavy rains were the most common occurrences. Additionally, the increase in population and climate change will make it harder to find water.