Indian Solar Cell Manufacturing Capacity By 2027

The project pipeline of the production linked incentive (PLI) scheme, under which India is offering around $2.5 billion for expanding solar PV module manufacturing, suggests that its domestic production capacity can surpass 70 gigawatts (GW) by 2027.

Global Market: 

Solar manufacturing today is highly concentrated in just five countries accounting for over 90 per cent of global capacity. China is far and away the largest, with the capacity to produce solar modules with an output of over 500 GW every year, equivalent to 80 per cent of world manufacturing capacity.

The other four are Viet Nam (5 per cent of the global market), India (3 per cent), Malaysia (3 per cent) and Thailand (2 per cent). The next five leading solar manufacturers — the US, Korea, Cambodia, Türkiye and Chinese Taipei — each account for around 1 per cent of the global total, as does the European Union.

India Government Policy Efforts Domesticating Solar Cell Manufacturing 

The government mandates all solar cells used in its projects to be sourced domestically starting from April 1, 2026. This highlights the importance of domestic solar cell manufacturing for the growth of the country’s solar industry and reducing reliance on imports, especially from China. 
While the module manufacturing sector has seen an exponential growth, India is now an appealing destination for solar cell manufacturing investments as well. With the support of government initiatives, both domestic and foreign manufacturers are announcing bold expansion plans in this sector.

“If the new solar PV module manufacturing capacity under the PLI programme comes fully online by 2026, it would progress the solar PV module manufacturing capacity in India to well over what is needed until the end of this decade not just in the Stated Policies Scenario (STEPS) but also in the Announced Pledges Scenario (APS),” the IEA projected.

The government, last year, implemented the Production Linked Incentive (PLI) Scheme for high-eciency solar PV modules, with a budget of INR 24,000 crore to establish gigawatt-scale domestic manufacturing.

India's solar cell manufacturing capacity has signicantly expanded in recent years, driven by various government initiatives. By incorporating advanced technologies like mono PERC, TOPCon, and HJT modules. However, its solar PV cell manufacturing capacity stands at around 7 GW. By 2026, module manufacturing capacity is expected to surpass 150 GW, while cell capacity is projected to exceed 75 GW.

India Projected Solar Cell Manufacturing Capacities By 2027

1  waaree.com/products/pv-module/ 

2 Presently, Adani Solar has 4 GW of solar cell capacity, recently announced that will increase 10GW  by 2027 (Business Today)

3 RIL is setting up a solar photovoltaic giga factory in Jamnagar with a total capacity of 20 GW 

4 saurenergy.com 

5 saatvikgroup.com 

Conclusion

As India progresses towards self-reliance in solar manufacturing, it must prioritise the development of globally competitive products, expand its international reach, and position itself as a dependable alternative for markets looking to diversify supply chains and enhance resilience against global disruptions. To sustain growth and attract investment, the government needs to provide a stable and predictable policy framework.