India has secured the third position worldwide in terms of installed renewable energy capacity. The success of the renewable transition in enhancing macro resilience hinges on the effectiveness of industrial policies, particularly in localizing segments like solar cells. A recent report highlights that renewable energy plays a pivotal role in India’s medium-term strategy to reduce external energy dependency structurally.
Domestic manufacturing capacity for modules has seen a significant expansion, aided by PLI schemes and customs duties. Notably, recent data from MNRE indicates a notable surge in domestic solar manufacturing capacity, with module capacity increasing from 38 GW in March 2024 to 74 GW in March 2025, and cell capacity rising from 9 GW to 25 GW during the same period. However, the report points out that India’s renewable deployment in upstream segments like solar cells still relies partially on imported components.
Despite the shift towards renewables reducing reliance on fossil fuels, there remains exposure to external risks associated with manufacturing supply chains. While deployment capacity has expanded rapidly, the manufacturing capabilities in upstream segments have not kept pace. Consequently, a significant part of the solar ecosystem in India remains vulnerable to external supply chains, particularly from China.
The non-fossil fuel installed capacity in India has exceeded 50% of the total capacity, reaching 262.7 GW by November 2025, with solar and wind energy contributing substantially to the incremental additions. The government’s 2030 NDC target aims for 500 GW of non-fossil fuel capacity, a goal that India achieved five years earlier than expected. This progress has been supported by various initiatives such as utility-scale expansion, distributed generation schemes like PM Surya Ghar and PM-KUSUM, and ongoing policy backing for grid integration.
The expansion of renewables at a macro level directly reduces the import intensity of growth, as each additional unit of domestic solar and wind power diminishes the economy’s reliance on imported fossil fuels, as per the report.
