The proposal is part of a broader effort to enhance India?s renewable energy capacity and stimulate local industry growth. By increasing local sourcing, the government hopes to generate employment, stimulate economic development, and ensure sustainable energy practices.

This move aligns with the "Make in India" campaign, aiming to transform India into a global manufacturing hub. NITI Aayog's recommendation underscores the importance of integrating local industries into the renewable energy supply chain, which could lead to the development of advanced manufacturing capabilities within the country.

Additionally, the policy is expected to encourage innovation and competitiveness among local manufacturers, helping them to meet global standards. This could result in a more resilient and self-sufficient energy sector, capable of meeting the country?s growing power demands sustainably.

By implementing this local sourcing requirement, India aims to achieve a balance between fostering economic growth and advancing its renewable energy objectives. This strategy not only supports the domestic economy but also contributes to global efforts to combat climate change by promoting cleaner energy solutions.