In the recent turn of events, Bloomberg mentioned that India is nearing completion of a $1 billion capital subsidy plan to strengthen its solar manufacturing sector. This initiative is part of a broader strategy to lessen reliance on China and capitalise on the global shift toward renewable energy.
Moreover, the Ministry of New and Renewable Energy aims to support domestic producers of wafers and ingots—one of the most underdeveloped segments of India’s solar industry, the Bloomberg sources said, requesting anonymity due to the private nature of the discussions.
Further, the sources stated that the plan is backed by top advisers in Prime Minister Narendra Modi’s office and is expected to be submitted for cabinet approval in the coming months.
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A spokesperson for the Ministry of New and Renewable Energy did not immediately respond to a request for comment. India remains highly dependent on China for solar equipment imports, posing a risk to the nation’s energy security.
While the country has expanded its domestic module and cell manufacturing, wafer and ingot production is still limited to just 2 gigawatts, primarily by Adani Enterprises Ltd. BloombergNEF reports that India currently has over 71 gigawatts of module capacity and nearly 11 gigawatts of cell capacity.Sources also said the proposed subsidy plan aims to mirror the success of India’s mobile phone manufacturing sector. Modi’s government has invested billions in incentives to attract companies like Apple Inc. and Samsung Electronics Co. to establish production facilities. This has led to a significant surge in Apple’s iPhone exports from India.
