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India has made another breakthrough in the area of renewable energy production. According to the recently published NITI Aayog report, the country’s production capability of solar modules has gone up from 2.3 GW to an all-time high of 100 GW in August 2025. However, there is a serious issue that needs to be addressed. The Indian industry has a heavy dependency on imports of materials and components required for manufacturing solar panels. \n<\/p>\n
The generation of solar energy capacity has increased remarkably over the last decade in India. In the period between fiscal years 2015 and 2025, India has managed to install 103 gigawatts of solar energy in the national grid, making the total installed capacity of India at 106 gigawatts in March 2025. India has made a target of generating 280 gigawatts of solar energy by 2030. It implies that the country will have to make 174 gigawatts of solar capacity addition in coming years, which will significantly increase the demand for solar components domestically. \n<\/p>\n
According to NITI Aayog, India’s solar manufacturing is primarily limited to the assembly of solar cells and modules. India has a very limited presence in the manufacturing of precursors to solar panel manufacturing, such as polysilicon, ingots, and wafers. Due to the lack of wafer manufacturing and limited cell production capacity, Indian manufacturers have to import these components extensively.<\/p>\n
China completely dominates the global solar manufacturing sector. By December 2024, China alone held more than 80 percent of the world’s total supply capacity. This is why China accounted for approximately 59 percent of India’s total solar cell and module imports in 2024. This figure demonstrates India’s deep dependence on China, despite increasing domestic capacity.<\/p>\n