India’s Solar Module Capacity to Hit 220 GW by FY2028

07 Nov 2025 CW Team

India’s solar module manufacturing capacity has risen sharply from about 72 GW in March 2024 to nearly 118 GW by July 2025, while cell capacity has grown from 8 GW to around 27 GW, according to CareEdge Ratings. Wafer manufacturing, however, remains limited at 2 GW, though several Indian companies are planning expansions exceeding 30 GW, with investments of over Rs 240 billion.

The surge in capacity reflects growing installations, policy support, and easier access to finance. Current operational output stands at 50–60 GW for modules and 8–10 GW for cells, leaving a cell import dependency of about 40–45 GW, largely from China.

To address this, India has introduced the Approved List of Models and Manufacturers (ALMM), mandating the use of domestic modules for specific projects. Upcoming ALCM/ALMM rules for solar cells aim to strengthen local manufacturing further.

CareEdge noted that India’s solar exports are emerging as a new growth driver as production begins to outpace domestic demand. Exports have climbed from Rs 8.7 billion in FY2019 to Rs 94.6 billion in FY2025, peaking in FY2023–2024, when shipments briefly surpassed imports, mainly driven by US buyers diversifying supply away from China.

Although exports dipped in FY2025 amid tighter US scrutiny under the Uyghur Forced Labour Prevention Act, they rebounded in early FY2026 as developers fast-tracked shipments ahead of tariff deadlines. During the same period, imports dropped 54 per cent, signalling India’s steady progress toward solar manufacturing self-sufficiency.

In value terms, exports to the United States rose by Rs 11.04 billion in the first four months of FY2026, while shipments to Kenya surged 55-fold year on year.

Infrastructure Urban

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