India’s solar module manufacturing capacity has surged to 200 GW by June 2026, supported by the PLI Scheme, ALMM, and BCD policies. However, the country imports 100% of its polysilicon and remains almost entirely dependent on Chinese wafers — exposing a critical upstream gap. With China controlling over 95% of global wafer production and more than 80% of total solar manufacturing capacity, India’s ambition to build a China-alternative supply chain hinges on mastering polysilicon refining and wafer slicing. CEO Tanmoy Duari of AXITEC Energy India underscores that solar manufacturing is now a strategic asset tied to national security and economic sovereignty.
According to www.pv-magazine-india.com, India’s annual solar module manufacturing capacity has crossed 200 GW as of June 2026 — yet the country remains fully dependent on imports for polysilicon and solar wafers.
Solar manufacturing as a strategic asset
Solar manufacturing has evolved from an industrial activity into a national security priority. Over the past five years, geopolitical disruptions — including the US-China strategic rivalry, pandemic-era supply chain shocks, maritime logistics bottlenecks, and growing concerns over economic sovereignty — have elevated clean energy technology access to the level of energy security. As Tanmoy Duari, CEO of AXITEC Energy India, notes:
“Solar manufacturing has become a strategic asset, influencing national security, trade policies, economic competitiveness, and technological leadership.” — Tanmoy Duari, CEO, AXITEC Energy India
The shift is reflected in policy responses worldwide: governments in the United States, Europe, Japan, and India have launched industrial incentives, local-content mandates, manufacturing subsidies, and strategic procurement frameworks — mirroring semiconductor policy efforts. This reframing means domestic solar production is no longer evaluated solely on cost or speed, but on resilience, control, and long-term autonomy.
China’s two-decade dominance
China’s position was built systematically over 20 years, with sustained investment across the full photovoltaic value chain — from polysilicon refining and ingot casting to wafer slicing, cell fabrication, module assembly, glass, backsheets, EVA films, and even manufacturing equipment. According to industry estimates current as of June 2026, China accounts for over 80% of global solar manufacturing capacity and controls more than 95% of global wafer production. Its vertical integration enables rapid cost optimization, supply chain shortening, and swift adoption of next-generation technologies like TOPCon and Heterojunction (HJT).
This concentration creates structural vulnerability for import-dependent nations. Pricing volatility, export controls, and trade restrictions — such as U.S. anti-dumping duties or EU’s proposed carbon border mechanisms — directly impact downstream solar deployment timelines and project economics.
India’s rapid module-scale progress
India’s solar manufacturing acceleration since 2020 has been extraordinary. Prior to that, domestic capacity was largely limited to module assembly, reliant 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 expanded at unprecedented pace. By June 2026, ALMM-approved manufacturing capacity exceeds 190 GW, while domestic solar cell manufacturing capacity has crossed 30 GW. Several integrated facilities — combining cell, module, and ancillary production — are under construction, backed by investments totaling billions of dollars.
Leading Indian manufacturers have announced expansion plans targeting both domestic demand and global export markets — positioning India as one of the world’s fastest-growing solar manufacturing destinations.
The upstream gap: polysilicon and wafers
Despite this scale, India’s manufacturing story remains structurally incomplete. The Ministry of New and Renewable Energy (MNRE) acknowledges that nearly all of India’s polysilicon requirements continue to be imported — effectively 100% reliance. Wafer imports remain overwhelmingly sourced from China, even as domestic module output surges. This imbalance persists because wafers serve as the foundational substrate for solar cell production: without domestic wafer manufacturing, module assembly alone cannot confer supply chain sovereignty.
As the source states, replicating China’s upstream ecosystem is far more complex than establishing module lines. It demands patient capital, specialized metallurgical expertise, high-purity material handling infrastructure, and decades-long industrial planning — not just policy-driven capital allocation. The MNRE has responded by expanding the scope of the PLI scheme to include polysilicon and wafer manufacturing — a critical signal of intent, though commercial-scale production remains absent as of mid-2026.
Source: pv-magazine-india.com
Compiled from international media by the SCI.AI editorial team.
