India To Boost Solar Cell Production Capacity By Fivefold By 2025

New Delhi, Jun 25 (KNN) India is on track to substantially increase its domestic solar cell manufacturing capacity, a move aimed at reducing the country's reliance on Chinese imports for solar panel production, according to a senior government official.

Renewable Energy Secretary Bhupinder Singh Bhalla revealed in a recent interview that India's solar cell production capacity is projected to expand fivefold, reaching approximately 30 gigawatts annually by March 2025.

This increase is expected to facilitate the government's plans to broaden import restrictions, supporting local adoption of solar power technology and advancing Prime Minister Narendra Modi's vision of greater self-sufficiency in the renewable energy sector.

In recent years, India has implemented various measures to decrease its dependence on Chinese solar imports, including imposing taxes on certain solar components and introducing a non-tariff trade barrier known as the ‘approved list of models and manufacturers.’

These policies have effectively limited foreign shipments and bolstered domestic module production.

The focus on developing local manufacturing capabilities aligns with similar concerns expressed by U.S. and European officials, who have noted that an influx of Chinese solar products has saturated global markets and hindered the development of domestic supply chains in their respective regions.

In response to these concerns, the U.S. administration recently implemented stricter tariffs on Chinese solar equipment.

Despite progress in module production, Indian manufacturers continue to rely on Chinese imports for various components used in solar panel assembly.

Bhalla indicated that solar cells would be the next component targeted for import restrictions, though he emphasised a more cautious approach this time.

"We plan to give the industry around two years’ time to prepare so that we have ample domestic capacity," Bhalla stated, adding that the government aims to establish a ‘firm, forward-looking policy.’

This measured approach comes in the wake of a temporary withdrawal of non-tariff import restrictions on modules last year, following industry complaints about supply disruptions affecting ongoing projects.

As India continues to navigate its transition towards greater energy independence and renewable power adoption, the development of a robust domestic solar manufacturing ecosystem remains a key priority for the government.

(KNN Bureau)