India’s Solar Manufacturing Booms Toward 120GW, But Import Reliance Remains A Key Hurdle

India's Solar Industry Expands Rapidly, Eyes 120GW Module Capacity by 2030

According to the newly released India Solar Supply Chain Map Edition 1–2025 by Sinovoltaics-a joint consultancy based in the Netherlands and Germany-India is rapidly ascending in the global photovoltaic (PV) sector. The report highlights that India's annual PV module production capacity is expected to exceed 120GW by 2030, with increasing levels of vertical integration and supply chain consolidation.

Core Segments See Rapid Growth, but Expansion is Slowing
The report outlines that India's solar module manufacturing capacity has seen a dramatic rise, increasing from just 8GW in 2017 to the current 68.4GW. By 2030, this figure is forecast to climb to 120GW. Similarly, solar cell production capacity has expanded from 3GW to 24.6GW, with expectations of reaching 65GW by the end of the decade. Upstream ingot manufacturing is also projected to double, from 14GW today to 28GW in 2030.

However, while overall capacity growth remains strong, the report notes that the speed of expansion is beginning to slow. In particular, global declines in polysilicon prices have put downward pressure on upstream investments. India's current industrial-grade silicon capacity stands at roughly 300,000 tons annually, and although expansion plans are in place, market conditions have led to a more cautious approach.

Industrial Momentum Builds with the Rise of Leading Firms and Overseas Investment
Dricus de Rooij, CEO of Sinovoltaics, emphasized that both new market entrants and expanding established firms are accelerating India's influence in the global solar supply chain. "The inclusion of new key manufacturers in this edition of the supply chain map illustrates the dynamic and maturing nature of India's PV industry," he said.

The report names a number of notable manufacturers that are shaping the current industrial landscape. Among them are Reliance Industries and Zuvay Technologies in Gujarat, Evervolt in Andhra Pradesh, Avaada and Luxra in Maharashtra, and Group Surya in Bihar. These firms are contributing significantly to regional clustering, industrialization, and scale efficiency.

Simultaneously, major Indian PV players are expanding internationally. Companies such as Vikram Solar and TATA Power have launched localized manufacturing initiatives in the United States, indicating a clear push toward internationalization and the diversification of production bases.

Policy-Driven Growth Faces Structural Import Dependencies
Sinovoltaics attributes much of India's solar sector growth to proactive government support. Programs such as the Production Linked Incentive (PLI) scheme and strategic import tariffs have played a central role in attracting investment and scaling up manufacturing operations.

Nonetheless, the report warns of a critical bottleneck: India's solar supply chain continues to rely heavily on imported raw materials and advanced production equipment. This includes dependence on foreign sources for high-purity silicon, wafers, and automated manufacturing systems.

The analysts conclude that while India is well-positioned to become a global hub for PV manufacturing, significant challenges remain in reducing external dependencies and achieving long-term industrial self-reliance. Bridging these structural gaps will be key to sustaining momentum and transitioning from a volume-driven model to a fully integrated, high-tech domestic solar ecosystem.