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This content presents official data, regulatory frameworks and energy targets that explain how India is strengthening its solar industry by 2030
India has implemented public policies to strengthen its solar energy production chain. Therefore, the country seeks to reduce its dependence on imports from China. In 2022, the Indian government began a cycle of investments and industrial incentive programs. As a result, national production capacity began to gradually increase. These measures aim to increase internal competitiveness, ensure energy security and support internationally agreed environmental commitments.
Public policies accelerate national production capacity
According to PV Magazine, India’s solar module production capacity increased from 38 GW in 2023 to 74 GW in 2025, while solar cell production reached 25 GW. According to India’s Ministry of Renewable Energy (MNRE), this growth is due to the exemption of interstate tariffs for projects commissioned by June 2025, the authorization of 100% foreign direct investment in the renewables sector from 2022, and financial support through the Production Linked Incentive (PLI), in effect since 2021. In addition, private companies have also expanded their operations. Tata Power’s TP Solar Ltd. inaugurated a 2025 GW plant in Tamil Nadu in March 4,3, as reported by the Press Trust of India.
Imports from China are still relevant, but losing share
Data from Mercom India Research shows that in 2020, China accounted for over 90% of India’s solar panel imports. By 2024, this share had fallen to 65% for solar modules and 56% for photovoltaic cells. This result is linked to the Atmanirbhar Bharat Initiative, launched in 2020 by the Indian government, which promotes the domestic production of strategic technologies. Additionally, the application of anti-dumping duties and subsidies to the domestic industry between 2021 and 2023 helped reduce external dependence. Nevertheless, China remains an important supplier of inputs and components not produced locally, such as wafers and polysilicon.
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Established goals and climate commitments guide actions
The National Electricity Plan (2023) sets a target of installing 280 GW of solar capacity by 2030, with an estimated annual increase of 30 GW. In addition, the government plans to generate skilled jobs in the renewable sector, develop regions with less industrial infrastructure, and expand clean energy in rural areas through the PM-KUSUM program, in effect since 2019. At COP26 in November 2021, India committed to reaching 500 GW of non-fossil capacity by the end of this decade.
Technical and logistical challenges still need to be overcome
Despite the progress, the sector faces bottlenecks. According to the Central Electricity Authority (CEA) technical report for 2023, domestic production of wafers and polysilicon is limited. There are also frequent delays in releasing land for plants, and the transmission network requires investment and improvements. The Adani Group has been investing in building an integrated production chain in Gujarat since February 2024. The initiative, with a budget of US$ 3 billion, seeks to reduce these deficiencies.
Growth outlook is aligned with policies and internal capacity
According to the International Energy Agency (IEA), India is one of the economies with the greatest potential for solar expansion. The Climate Transparency 2023 report recognizes that the country has been contributing to mitigating global emissions. Fitch Ratings, in turn, classifies the Indian model as balanced between growth and energy security. Although global leadership in the sector depends on several external and internal factors, the current trajectory demonstrates technical and political consistency, with positive impacts on industrialization and climate commitments.
