India’s solar module manufacturing capacity has surged to 200 GW annually as of June 2026 — a fivefold expansion since 2020 — yet the nation remains critically dependent on imports for upstream components. Over 95% of global solar wafers originate from China, and India imports virtually all its polysilicon and wafers despite having 30 GW of domestic cell capacity and ALMM-approved manufacturing exceeding 190 GW. This structural imbalance underscores the challenge of building a credible China-alternative supply chain. Policy tools like the PLI Scheme, BCD, and ALMM expansion in March 2026 aim to close the upstream gap, but replicating China’s vertically integrated, scale-driven ecosystem remains a multi-year undertaking.
According to www.energetica-india.net, India’s annual solar module manufacturing capacity has crossed 200 GW as of June 2026, yet the country still imports nearly all its solar wafers — with Chinese suppliers accounting for over 95% of global wafer production.
Solar Manufacturing as a Strategic Asset
Solar manufacturing has evolved from an industrial activity into a strategic national capability, influencing trade policy, economic competitiveness, and energy security. The COVID-19 pandemic first exposed vulnerabilities in hyper-concentrated supply chains, and subsequent geopolitical tensions — particularly the US-China strategic rivalry — have accelerated global efforts to diversify production. As noted by the report, “Energy security today extends well beyond securing fuel supplies. It increasingly encompasses securing access to clean energy technologies themselves.” This shift explains why governments across the United States, Europe, Japan, and India are deploying industrial incentives, local-content mandates, and strategic procurement frameworks.
China’s Two-Decade Dominance
China’s leadership in photovoltaic (PV) manufacturing was built systematically over 20 years, spanning polysilicon refining, ingot casting, wafer slicing, cell fabrication, module assembly, and supporting materials like glass, backsheets, and EVA films. According to industry estimates current as of June 2026, China accounts for more than 80% of global solar manufacturing capacity across the full value chain and controls over 95% of global wafer production. Its dominance in polysilicon — the foundational raw material — enables cost optimization, vertical integration, and rapid adoption of next-generation technologies such as TOPCon and heterojunction (HJT).
India’s Rapid Expansion Since 2020
India’s solar manufacturing landscape has transformed significantly since 2020. Five years ago, domestic capacity was limited almost exclusively to module assembly, with heavy reliance on imported cells and wafers. Today, driven by the Production Linked Incentive (PLI) Scheme, Basic Customs Duty (BCD), and the Approved List of Models and Manufacturers (ALMM), India’s ecosystem has scaled rapidly. By June 2026, ALMM-approved manufacturing capacity exceeds 190 GW, while domestic solar cell manufacturing capacity has surpassed 30 GW. Several integrated facilities — backed by investments running into billions of dollars — are now under construction.
The Upstream Gap Remains Critical
Despite this progress, India’s manufacturing story remains structurally incomplete. The country imports nearly all of its polysilicon and continues to rely overwhelmingly on Chinese wafer imports — even as domestic module output surges. Solar wafers form the essential substrate for cell production; without domestic wafer manufacturing, India cannot achieve true supply-chain sovereignty. Recognizing this vulnerability, the Ministry of New and Renewable Energy (MNRE) expanded the ALMM framework in March 2026 to include stricter upstream sourcing requirements — a move aimed squarely at accelerating domestic wafer and cell capacity.
Source: energetica-india.net
Compiled from international media by the SCI.AI editorial team.
