India’s solar photovoltaic (PV) module manufacturing capacity is projected to grow from 80 gigawatts (GW) to 125 GW by 2030, according to Union Minister for New and Renewable Energy, Pralhad Joshi. Additionally, the country’s solar cell manufacturing capacity is expected to increase from 25 GW to 40 GW in the near future.
India’s solar sector is experiencing significant growth, positioning the country as a potential global leader in renewable energy. This progress is driven by a rise in domestic solar manufacturing and increased rooftop solar adoption, accompanied by a noticeable decline in solar module and component imports.
The United States has recently imposed steep steel import duties of 3,521% on Southeast Asian countries, which is expected to create new export opportunities for Indian solar companies.
Experts note that such tariffs help shield local industries by reducing international competition. Pinaki Bhattacharya, founder of AMPIN Energy Transition, said that these measures would support India’s energy transition by enhancing economic viability.
Prof Barun Kumar Thakur of FLAME University observed, “This will certainly enable India to expand its business activities and boost exports of these commodities, at least in the short term. While India has tripled its solar productivity within a year, it should target 50 GW of solar cell production by the end of 2025. This would not only meet domestic demand but also open up significant export potential to the US and other markets.”
The green energy transition in India is gaining momentum, supported by government subsidies and a national goal to reach 500 GW of renewable capacity by 2030, including 292 GW of solar energy.
Major industry players like Tata Power, Adani Green, and Avaada Group are investing in local manufacturing to meet both the Make in India and clean energy goals.
For instance, Avaada Group currently has 6.5 GW of operational module manufacturing capacity, with an additional 6 GW of solar cell capacity set to be launched soon, along with other integrated manufacturing projects in the pipeline.
Geopolitical shifts are leading to a reconfiguration of global trade routes, positioning India as a key player. Jai, CEO of Galo Solar, noted, “These measures are reshaping global supply chains, encouraging factories to localise production in India and the US. This shift reduces over-reliance on single-region sourcing while enhancing energy security and long-term industrial resilience.”
In addition to geopolitical advantages, domestic policies such as the Approved List of Module Manufacturers (ALMM) and non-tariff barriers like ALCM are boosting demand for Indian-made solar equipment.
Prashant Choubey, President of Business Development at Avaada Group, commented, “India has gained substantial traction in building large-scale solar module and cell manufacturing capacity, a vital move toward securing the supply chain and meeting the country’s ambitious 500 GW renewable target by 2030. This growth will strengthen energy security, improve affordability, and solidify India’s global standing in solar manufacturing.”
Choubey further added, “With an annual renewable energy addition target of 50 GW, there’s a gap in domestic manufacturing that is now being addressed through strategic investments. However, building a fully self-reliant solar ecosystem requires development across the value chain—glass, EVA, backsheets, and other essential components. During the first eight months of FY 2024–25, India saw a 20% decline in solar cell imports and a 57% drop in module imports, primarily due to increased domestic production supported by government initiatives.”
Although current developments offer promising opportunities, India must strengthen its domestic ecosystem. “Recent US tariffs on Southeast Asian exporters—previously major solar module suppliers—create new prospects for Indian producers. Despite facing an estimated 40% total duty when exporting to the US, India can remain competitive through higher value addition, advances in battery storage, and transparent supply chains,” said Vinay Thadani, Director and CEO of GREW Solar.
This paradigm shift supports the growth of indigenous manufacturers, generates employment, and strengthens the national economy. To meet rising demand, companies are expanding local distribution networks and scaling up production. While challenges remain, including the need for technological innovation and production capacity enhancements, they can be overcome through sustained effort and innovation.
Shreya Mishra, co-founder of SolarSquare said, “The sudden drop in imports, at a time when domestic production wasn’t fully scaled up, led to supply chain disruptions, causing delays in utility-scale and commercial & industrial (C&I) projects. on Domestic Content Requirement (DCR) front, the capacity augmentation is taking more time than expected, reflecting adversely in terms of supply-crunch and price-up situations in the market.”
India’s push for self-sufficiency is cementing its status as a global renewable energy leader. By reducing dependence on imports and nurturing a robust domestic solar economy, India is paving the way for environmentally sustainable growth and long-term energy independence, emphasised Ishan Chaturvedi, Director and Co-founder of V&Y Solar.
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