India Solar Manufacturing Surge: Powering a Bright Future
India is on track to become a major player in the global solar manufacturing market. A recent report by JMK Research suggests that the country’s total solar manufacturing capacity could surpass 120 GW by 2030. This growth is bolstered by robust government initiatives such as the Production-Linked Incentive (PLI) scheme and the Basic Customs Duty (BCD) on solar imports, which are paving the way for a thriving domestic solar industry.
According to the report, the PLI scheme has already attracted investment commitments of approximately $7 billion, creating the potential for around 48 GW of integrated solar manufacturing capacity. The Basic Customs Duty of 40% on solar modules and 25% on solar cells has further boosted domestic manufacturing by making imports more expensive. This duty has encouraged Indian manufacturers to produce competitive alternatives.
The report highlights significant growth in India’s solar manufacturing sector. By December 2022, the country’s solar module manufacturing capacity reached 39 GW per year, marking a 78% increase from the previous year. In the first half of 2023, India produced nearly 13 GW of solar modules, a 68% growth compared to the same period in 2022. Major Indian manufacturers such as Reliance, Adani, and Vikram Solar are planning to significantly increase their production capacities.
Despite the promising growth, the report also outlines potential challenges such as pricing pressures, competition, and the need for advanced technology. These challenges are common across the renewable energy sector, as noted in a 2025 report on renewable energy barriers. Nevertheless, India’s solar manufacturing sector is expected to continue its upward trajectory, driven by supportive government policies and increasing domestic and international demand.
India’s ambitious solar manufacturing targets are part of its broader renewable energy goals, which aim to achieve 500 GW of installed renewable energy capacity by 2030. This aligns with global trends where countries like the Philippines are also ramping up their solar capacities, projected to reach 15.3 GW by 2030, driven by similar government initiatives (source).
India’s journey towards becoming a solar manufacturing powerhouse not only promises economic gains but also reinforces its commitment to sustainable energy solutions, positioning the country as a key player in the global renewable energy landscape.
