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Solar PV Manufacturing in India: Shripad Naik Stresses Need to Reduce Imports

Presently, the installed solar PV module manufacturing capacity in the country, as per the Approved List of Models and Manufacturers, issued on February 17, 2025, is around 67 GW.

March 28, 2025. By Abha Rustagi

The Indian government is making strong efforts to boost the production of solar equipments within the country. The aim is to reduce the heavy reliance on imports from China and minimise potential supply chain problems.

In a written reply to Rajya Sabha, Shripad Yesso Naik, the Minister of State for New and Renewable Energy and Power, pointed out that India still depends largely on China for solar cells, wafers, and polysilicon materials.

"Presently, the installed solar PV module manufacturing capacity in the country, as per the Approved List of Models and Manufacturers, issued on February 17, 2025, is around 67 GW. The present solar PV cell manufacturing capacity in the country as per the information provided by the Solar PV Manufacturers Associations, is around 25 GW. The installed Ingot and Wafer manufacturing capacity in the country is around 2 GW," said Naik.

Relying so much on imports from a single region like China poses risks, including supply disruptions, price changes, and currency fluctuations. "The country’s solar PV module manufacturing is sufficient to cater to domestic demand. However, there is some import dependency for solar PV cells and even higher import dependency for wafers. Aforesaid import dependency, mostly from a particular geographical region, may pose some risk in terms of supply chain disruption, price fluctuation, currency rates, etc.," he added.

Naik further stated that the goal is to create a strong solar manufacturing sector in India to secure energy needs and promote renewable energy.

Several projects are underway to increase local manufacturing. The Production Linked Incentive (PLI) Scheme is a key initiative, with a funding of INR 24,000 crore. This scheme is being executed in phases to support the creation of high-efficiency solar PV module manufacturing in India. Through its first two phases, over 48 GW of mostly or fully integrated solar PV production capacity has received government approval.

Another important rule is the Domestic Content Requirement (DCR) for government-supported solar projects like PM-KUSUM and PM Surya Ghar: Muft Bijli Yojana. These regulations ensure that solar cells and modules used in subsidised projects are sourced from Indian manufacturers. Additionally, the government’s 'Make in India' preference mandates that public sector solar projects utilise equipment with at least 50 percent domestic content.

To further support local manufacturers, the government has introduced import duties on solar parts. Starting in April 2022, a Basic Customs Duty (BCD) is applied to imported solar PV cells and modules. Also, tax breaks for imported solar project equipment were removed in 2021, encouraging local production. Despite these strategies, India still heavily relies on imported solar cells and wafers. The government is aware of this challenge and is committed to enhancing local manufacturing capabilities.

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