India’s solar industry is expanding rapidly to reduce reliance on China and offset U.S. tariffs, fueled by booming domestic demand and government support.
India is intensifying efforts to challenge China’s dominance in the solar manufacturing industry as U.S. tariffs pose fresh hurdles for its exports. At ReNew’s government-backed factory in Jaipur, nearly 1,000 workers produce enough solar modules annually to power 2.5 million homes, symbolizing India’s rapid growth in clean energy. The country’s solar module capacity more than doubled to 74 gigawatts in the past fiscal year, while solar cell production tripled.
Despite this momentum, India still relies heavily on China for raw materials and components. Government restrictions on imports, tax incentives, and clean energy targets of 500 gigawatts by 2030 are encouraging firms to scale up local production. Analysts say domestic demand, which has surged as solar power costs have halved compared with coal, will help buffer the impact of President Trump’s 50% tariffs on Indian goods.
Experts predict India could soon produce most solar panel components locally, with only polysilicon imports continuing beyond 2030.
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