New Delhi, Aug 17: India’s solar manufacturing sector has expanded rapidly in recent years, strengthening the country’s clean-energy ambitions. However, a key gap remains in the upstream part of the solar value chain, with domestic production of critical inputs such as polysilicon, ingots and wafers still limited, according to a NITI Aayog assessment.
India’s progress in solar module and cell manufacturing has been significant. Module manufacturing capacity listed under the Approved List of Models and Manufacturers (ALMM) rose from around 2.3 GW in 2014 to 100 GW by August 2025. Solar cell manufacturing capacity also reached about 25 GW by March 2025, highlighting the rapid expansion of domestic production.
But building a strong solar industry requires more than assembling cells and modules. Polysilicon, ingots and wafers form the foundation of the photovoltaic manufacturing process, and India continues to depend on imports for several of these critical components.
This import dependence can expose manufacturers to global supply disruptions, international price movements and changes in trade policies. China continues to have a dominant position in the global photovoltaic supply chain and accounted for nearly 59 per cent of India’s photovoltaic cell and module imports in 2024, according to the assessment.
The need to strengthen domestic manufacturing is becoming more important as India’s solar power capacity continues to grow. Between FY2015 and FY2025, the country added around 103 GW of solar capacity, taking its installed solar capacity to about 106 GW by March 2025.
With India targeting a much larger renewable-energy base by 2030, demand for solar cells, modules and related components is expected to remain strong. This growing domestic market presents an opportunity for Indian manufacturers to expand production and develop capabilities across the entire value chain.
A deeper manufacturing ecosystem could bring several benefits. Producing more components domestically would help reduce import dependence, create skilled employment and strengthen the resilience of the renewable-energy sector. It could also encourage greater investment in technology, research and manufacturing infrastructure.
For Indian companies, the opportunity extends beyond the domestic market. Building competitive capabilities in wafers, cells, modules and other solar components could eventually help manufacturers increase exports and establish stronger positions in global supply chains.
However, developing upstream capacity will require significant investment, advanced technology, skilled manpower and reliable access to raw materials. Long-term policy support and stronger coordination between industry and government will also be important to make such investments commercially viable.
The next phase of India’s solar manufacturing journey, therefore, is likely to focus on moving beyond module assembly and building a more integrated domestic supply chain.
India has already built a strong foundation in solar module and cell manufacturing. The bigger opportunity now lies in strengthening the upstream stages of production. A more complete domestic solar ecosystem could reduce supply-chain vulnerabilities, create higher-value industrial opportunities and help India build a stronger position in the global clean-energy manufacturing market.