India Strengthens Solar, Wind, And Green Hydrogen Manufacturing With 121.7 GW Domestic Solar Module Capacity

India is making significant progress in strengthening its renewable energy manufacturing and infrastructure capabilities, particularly in the solar sector. As of November 25, 2025, the country’s domestic solar module manufacturing capacity has reached 121.7 gigawatts (GW), according to the Approved List of Models and Manufacturers (ALMM). Out of this, 26.6 GW of capacity has been supported under the Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules. This government initiative, with an outlay of ₹24,000 crore, aims to promote domestic manufacturing at a large scale. Under the PLI scheme, Letters of Award have been issued for establishing 48,337 megawatts (MW) of fully or partially integrated solar PV module manufacturing units across the country.

Despite the strong domestic module manufacturing capacity, India continues to rely on imports for certain upstream components. The country’s solar PV cell manufacturing capacity is approximately 27 GW, while ingot and wafer production stands at around 2 GW. Notably, India currently does not have commercial production of polysilicon. This dependence on imports is reflected in trade data for the financial year 2024-25, which shows that India imported solar PV cells worth around 1,641 million US dollars, wafers valued at US$156 million, and polysilicon worth US$0.03 million.

To reduce reliance on imports and encourage domestic manufacturing, the Ministry of New and Renewable Energy (MNRE) has introduced multiple policies. These include mandating the sourcing of solar PV cells and modules from domestic manufacturers under schemes such as CPSU Scheme Phase-II, PM-KUSUM Components B & C, and the PM Surya Ghar: Muft Bijli Yojana, which provides government subsidies. The government has also imposed Basic Customs Duty (BCD) on imported solar PV cells, modules, inverters, and solar glass, while exempting BCD on capital goods used in the manufacture of solar PV cells and modules.

In the wind energy sector, India has achieved high levels of indigenization, with 70 to 80 percent of components being produced domestically. The country has a robust domestic manufacturing base and an annual production capacity of around 20,000 MW. For offshore wind projects, the Union Cabinet approved a Viability Gap Funding (VGF) scheme with an outlay of ₹7,453 crore. Of this, ₹6,853 crore is allocated for 1 GW of projects off the coasts of Gujarat and Tamil Nadu. A 500 MW offshore project tender issued by SECI in September 2024 off Gujarat did not receive responses from developers, though planning for 10 GW of offshore transmission capacity by the Central Transmission Utility (CTU) has been completed.

In addition, the Government of India is advancing the National Green Hydrogen Mission (NGHM) to position the country as a global hub for green hydrogen. Ports in Gujarat, Tamil Nadu, and Odisha have been identified as green hydrogen hubs. Andhra Pradesh has also announced plans to develop a Green Hydrogen Valley by 2030, with NTPC’s proposal for a Green Hydrogen Hub at Pudimadaka receiving endorsement from the MNRE. These initiatives highlight India’s commitment to expanding renewable energy manufacturing and infrastructure while promoting clean energy technologies.

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