India has emerged as the world’s third-largest country in terms of installed renewable energy capacity. According to a recent report by Morgan Stanley, the nation’s shift toward clean energy is expected to lower its dependence on external sources. However, the long-term success of this transition will largely depend on the pace at which India develops domestic manufacturing capabilities for essential components such as solar cells, wafers, and polysilicon.
Data released by the Ministry of New and Renewable Energy (MNRE) shows significant growth in the country’s solar manufacturing sector. India’s solar module production capacity increased sharply from 38 GW in March 2024 to 74 GW by March 2025. During the same period, solar cell manufacturing capacity expanded from 9 GW to 25 GW.
Despite these gains, the report highlights that India continues to depend substantially on imports for critical upstream materials and components. During FY2025, the country imported nearly 35 million solar modules valued at approximately USD 1.6 billion. It is estimated that between 60 and 80 percent of these imports originated from China.
India’s non-fossil fuel power generation capacity has now surpassed the 50 percent mark of the nation’s total installed electricity capacity, reaching 262.7 GW. The majority of recent capacity additions have come from solar and wind energy projects, reflecting the country’s growing focus on renewable power generation.
