India’s PV Manufacturing Ecosystem: Growth, Policies, Challenges and Way Forward

India is one of the fastest-growing solar energy markets in the world, driven by ambitious climate commitments, energy security concerns, and the goal of achieving Net Zero emissions by 2070. To sustain this growth, India is focusing on developing a robust domestic Photovoltaic (PV) manufacturing ecosystem that spans the entire solar value chain, from raw materials to finished modules.

Understanding the PV Manufacturing Ecosystem

The PV manufacturing ecosystem includes multiple stages:

• Polysilicon production

• Ingot and wafer manufacturing

• Solar cell fabrication

• Solar module assembly

• Balance of system components such as glass, frames, backsheets, and inverters

A strong ecosystem requires integration across these stages, technological capability, skilled manpower, reliable supply chains, and supportive policy frameworks.

Current Status of PV Manufacturing in India

India has made significant progress, especially in module manufacturing:

• India is among the top global producers of solar PV modules.

• Installed module manufacturing capacity has expanded rapidly in recent years.

• Cell manufacturing capacity is growing, though still behind module assembly.

• Polysilicon, ingot, and wafer manufacturing remain weak, with high import dependence, mainly on China and a few East Asian countries.

Thus, India’s ecosystem is presently strong at the downstream level but relatively weak at the upstream and midstream stages.

Key Policy Initiatives Supporting the Ecosystem

Production Linked Incentive (PLI) Scheme

The PLI scheme for High Efficiency Solar PV Modules aims to:

• Promote integrated manufacturing from polysilicon to modules

• Encourage adoption of advanced technologies

• Reduce import dependence

• Build globally competitive capacities

It is the backbone of India’s effort to establish a complete solar manufacturing value chain.

Basic Customs Duty (BCD)

• Imposition of BCD on imported solar cells and modules protects domestic manufacturers.

• It creates price competitiveness for Indian-made products.

Approved List of Models and Manufacturers (ALMM)

• Ensures quality standards

• Prioritizes domestically manufactured modules for government projects

Renewable Energy Targets

• 500 GW of non-fossil fuel capacity by 2030

• Large-scale solar deployment ensures sustained demand for domestically produced PV components

Role of Technology and Innovation

A competitive PV ecosystem depends on continuous technological advancement:

• Transition from PERC to TOPCon, HJT, and tandem solar cells

• Focus on higher efficiency and longer module life

• Automation and digitization of manufacturing processes

• Indigenous R&D through institutions like IITs, CSIR, and National Institutes of Solar Energy

Technological leadership is essential for global competitiveness, not just domestic substitution.

Economic and Strategic Significance

Energy Security

• Reduces dependence on imports of critical solar components

• Protects India from global supply chain disruptions

Economic Growth

• Generates large-scale employment

• Encourages MSMEs in auxiliary industries such as glass, chemicals, and logistics

Strategic Autonomy

• Solar manufacturing is becoming a strategic industry similar to semiconductors

• Control over clean energy technologies enhances geopolitical leverage

Challenges Facing the PV Manufacturing Ecosystem

High Capital and Energy Requirements

• Upstream manufacturing like polysilicon is capital-intensive and energy-intensive

• India must ensure access to cheap, clean power for such industries

Technology Gap

• Dependence on foreign technology and equipment remains significant

• Rapid technological obsolescence increases risk

Cost Competitiveness

• Chinese manufacturers benefit from economies of scale and state support

• Indian products are still relatively costlier in global markets

Raw Material and Supply Chain Dependence

• Limited domestic availability of high-purity quartz and other inputs

• Dependence on imports for machinery and specialty chemicals

Environmental and Sustainability Dimensions

A sustainable PV ecosystem must include:

• Green manufacturing using renewable energy

• Recycling of solar modules and waste management

• Responsible mining and material sourcing

• Lifecycle assessment of carbon footprint

This aligns with India’s broader commitment to green growth.

Way Forward

Building an Integrated Value Chain

• Incentivize manufacturing from polysilicon to modules

• Develop industrial clusters and solar manufacturing parks

Strengthening R&D

• Public–private partnerships in solar technology research

• Support for next-generation solar technologies

Ensuring Stable Policy Support

• Long-term clarity in tariff, PLI, and trade policies

• Predictability to attract global and domestic investors

Developing Skilled Workforce

• Specialized training programs in PV manufacturing and automation

• Collaboration between industry and technical institutions

Promoting Exports

• Position India as a global hub for reliable and sustainable solar manufacturing

• Use trade diplomacy to access emerging markets

Conclusion

India’s PV manufacturing ecosystem is central to its clean energy transition, economic resilience, and strategic autonomy. While significant progress has been made in module manufacturing, the real transformation lies in achieving full value-chain integration from raw materials to advanced solar technologies. With strong policy backing, technological innovation, and sustainable practices, India has the potential to emerge as a global leader in solar PV manufacturing and a pillar of the global energy transition.

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