In Short : The production capacity of India’s solar module ecosystem has approached 100 GW, which is enough to satisfy domestic demand. However, the stability of the industry may be threatened by cyclical risks and declining export potential. Although reliance on imported solar cells and wafers is still a major concern, installation growth is anticipated to reach 190 GW by 2027.
Encouraging Innovation and Strategic Growth
India built almost 24 GW of module capacity in FY25 alone, propelled by government assistance through the ALMM policy and the Production Linked Incentive (PLI) plan. Although the nation is now positioned as a powerful solar center due to its rapid expansion, upstream integration continues to present difficulties. The capacity of solar cells is less than 30 GW, indicating a disconnect between modules and essential resources like polysilicon and wafers, which are still largely imported.
Impact and Significance of Clean Energy
India’s renewable energy goals and energy security are directly supported by bolstering solar manufacturing through upstream integration. India can speed its transition to sustainable energy independence and protect itself from supply chain disruptions worldwide by developing strong indigenous capability.
About SBICAPS
The top investment banking firm in India, SBI Capital Markets (SBICAPS), offers strategic insights and solutions for the financial, renewable energy, and infrastructure sectors. The significance of upstream integration and sustainable growth in India’s solar manufacturing value chain is emphasized in its solar industry report, “Integrating to Differentiate.”
