India has reached 100 GW in solar PV module manufacturing capacity, marking a significant milestone in its self-reliant solar manufacturing ecosystem, aligning with the Atmanirbhar Bharat vision.
India has achieved a milestone in renewable energy manufacturing, with India's solar module production capacity reaching 100 gigawatts (GW) under the Approved List of Models and Manufacturers (ALMM). This achievement represents a transformation from 2.3 GW in 2014, demonstrating the nation's commitment to the Atmanirbhar Bharat vision and clean energy independence.
The Prime Minister of India celebrated this achievement, describing it as "yet another milestone towards self-reliance" that demonstrates India's manufacturing capabilities and dedication to solar energy. The Union Minister for New and Renewable Energy attributed this success to leadership and policy initiatives, including the Production Linked Incentive (PLI) Scheme for High Efficiency Solar Modules.
Growth from 2.3 GW to 100 GW: Manufacturing Revolution
The growth trajectory of India's solar module manufacturing capacity shows strategic policy intervention and industrial transformation. Starting from 2.3 GW in 2014, the sector has witnessed expansion driven by government support and private sector participation.
The Ministry of New and Renewable Energy (MNRE) introduced the ALMM Order on January 2, 2019, with the first list published on March 10, 2021, enlisting 8.2 GW of capacity. In four years, this capacity has grown more than twelvefold to reach the current 100 GW milestone.
This growth encompasses contributions from 100 manufacturers operating 123 manufacturing units across the country, an increase from 21 manufacturers in 2021. The expansion reflects increased capacity and a diversifying ecosystem with established players and new entrants adopting high-efficiency technologies and integrated operations.
Policy Architecture Driving Solar Manufacturing Success
Production Linked Incentive (PLI) Scheme
The Production Linked Incentive scheme demonstrates how well-designed incentives can generate cascading industrial benefits. Beyond direct manufacturing capacity, the scheme has stimulated upstream development in cells and wafers, creating a more integrated value chain.
The scheme's success lies in its performance-linked structure, which rewards actual production rather than mere capacity creation. This design encourages operational efficiency and market responsiveness, distinguishing it from traditional subsidy approaches that often create unproductive capacity.
Consider the transformation of manufacturers like Adani Solar and Vikram Solar, who leveraged PLI support to scale operations and upgrade technology. These companies have evolved from assemblers using imported components to integrated manufacturers developing proprietary technologies, a progression that strengthens India's long-term competitive position.
ALMM Framework and Market Creation
The ALMM functions as a critical regulatory instrument promoting local procurement of solar energy equipment. By mandating government-backed and utility-scale solar projects to procure modules exclusively from this approved list, the policy creates a captive market for domestically manufactured PV solar panels.
The ALMM's effectiveness is evident in the dramatic increase in registered manufacturers and the policy's role in channeling demand toward Indian producers. Looking ahead, the government plans to extend the ALMM framework to include solar cells from June 1, 2026, signifying deeper commitment to comprehensive value chain development.
Basic Customs Duty and Import Protection
Complementing the ALMM, the implementation of Basic Customs Duty (BCD) in April 2022 imposed a 40% duty on imported solar modules and 25% on solar cells. This strategic measure enhanced the cost-competitiveness of domestically manufactured alternatives.
The effectiveness of BCD is reflected in declining solar module imports, which decreased from $3.36 billion in FY 2021-22 to $2.15 billion in FY 2024-25, demonstrating successful import substitution and support for domestic manufacturing.
Strengthening Atmanirbhar Bharat Vision
The 100 GW manufacturing milestone directly strengthens the Atmanirbhar Bharat vision by reducing import dependencies, creating employment opportunities, and fostering technological innovation within the clean energy sector. This achievement is particularly significant as it positions India to accelerate progress toward its ambitious target of 500 GW of non-fossil fuel-based electricity capacity by 2030.
Solar energy has emerged as a dominant force in India's renewable energy mix, accounting for 47% of total installed renewable capacity. The sector has grown from just 2.82 GW in 2014 to 116 GW by June 2025, representing an extraordinary 41-fold increase.
The expansion of domestic solar PV module manufacturing yields multiple benefits beyond energy production. The PLI scheme alone is projected to create over 11,650 jobs, contributing significantly to skill development and employment generation in the clean energy sector.
Import substitution through domestic production has resulted in substantial foreign exchange savings. The reduction in solar module imports from over $3.3 billion to approximately $2.1 billion demonstrates the economic value of building indigenous manufacturing capabilities.
Strategically, this growth enhances India's energy security and reduces geopolitical vulnerabilities associated with concentrated global supply chains. India's geographical position also offers advantages as a potential export center to markets in the Middle East, Africa, and Southeast Asia.
Global Context and Competitive Positioning
While China dominates global solar PV module manufacturing with 75-95% market share, India's solar module sector is rapidly emerging as a significant alternative. India has become the third-largest solar market globally and is projected to become the largest module producer outside China by 2025.
This positioning is particularly valuable amid ongoing global supply chain diversification strategies. Countries seeking to reduce dependence on concentrated supply sources view India as an attractive alternative supplier, creating opportunities for export growth beyond domestic market needs.
Plus, India's leadership of the International Solar Alliance (ISA) strengthens its position in the global solar ecosystem. Established in 2015, the ISA aims to mobilize over USD 1000 billion for solar energy deployment by 2030. Initiatives like the "One Sun, One World, One Grid" project under ISA further cement India's credibility as a reliable solar technology partner.
Challenges and Future Trajectory
Despite remarkable progress, India's solar module manufacturing faces several challenges that require continued attention. The sector still exhibits dependencies on imported upstream components, particularly polysilicon and wafers, with China supplying over 60% of total solar equipment imports worth $7 billion in FY 2024.
Technological advancement remains crucial for global competitiveness. Indian manufacturers are transitioning from conventional mono-PERC technology to advanced architectures like TOPCon and Heterojunction (HJT) technologies. By 2025, these advanced solar energy technologies are expected to become predominant for utility-scale applications.
Recommendations for Sustained Growth
To maintain growth momentum and achieve global leadership, India must focus on several strategic priorities:
- Vertical Integration: Developing domestic capabilities in polysilicon, ingots, and wafers to reduce upstream dependencies and achieve complete value chain control.
- Innovation Investment: Continued focus on research and development in cutting-edge technologies including perovskite tandem cells and ultra-high-wattage modules.
- Infrastructure Development: Strengthening logistics networks and industrial infrastructure to support manufacturing scale-up and export capabilities.
- Export Promotion: Actively cultivating international market opportunities while addressing trade barriers and developing competitive advantages in key markets.
Conclusion
The achievement of 100 GW solar PV module manufacturing capacity under ALMM represents more than an industrial milestone—it establishes a foundation for India's emergence as a global clean energy manufacturing leader. This success demonstrates the effectiveness of coordinated policy intervention in building strategic industrial capabilities.
The Atmanirbhar Bharat vision in solar energy manufacturing is becoming increasingly tangible, with domestic capacity now sufficient to support aggressive renewable energy deployment targets while creating export opportunities. As India continues advancing toward its 500 GW non-fossil fuel target by 2030, the robust domestic manufacturing base ensures greater energy security and economic resilience.
Looking ahead, the focus must shift from achieving self-reliance to establishing global competitiveness across the entire solar value chain. With sustained policy support, continued investment in innovation, and strategic market development, India is well-positioned to become a major force in the global transition to clean energy, contributing meaningfully to both domestic energy security and international decarbonization efforts.
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India Solar Manufacturing FAQs
1. What is ALMM in India's solar manufacturing sector?
Ans. Approved List of Models and Manufacturers framework
2. How does India's PLI scheme support solar manufacturing?
Ans. Provides production-linked incentives for domestic manufacturers
3. What was India's solar manufacturing capacity in 2014?
Ans. 2.3 GW
4. Why did India impose customs duty on solar imports?
Ans. To protect domestic manufacturing
5. What is Atmanirbhar Bharat vision in solar energy?
Ans. Self-reliant solar manufacturing ecosystem