India’s ₹24,000 crore PLI scheme is transforming solar manufacturing, reducing imports, and encouraging domestic production for energy self-reliance.
India’s ambitious ₹24,000 crore Production-Linked Incentive (PLI) scheme for solar photovoltaic (PV) modules is reshaping the country's renewable energy landscape. Announced to encourage local manufacturing and reduce reliance on imported solar equipment particularly from China the scheme is now showing visible results with major Indian firms investing heavily in integrated solar production.
The initiative, launched by the Ministry of New and Renewable Energy (MNRE), is central to India’s plan to build self-reliance in solar energy manufacturing. The scheme incentivizes companies based on their manufacturing output and technological efficiency, promoting end-to-end production capacity from polysilicon to solar modules.
Major Indian Players Respond
Leading Indian companies such as Reliance New Energy, Tata Power Solar, Adani Solar, and Waaree Energies are at the forefront of this transformation. These firms have pledged to establish large-scale manufacturing plants that span the entire solar value chain, which includes polysilicon production, wafer making, cell production, and module assembly.
Reliance Industries, for example, is setting up a giga factory as part of its broader clean energy push. Adani Solar is expanding its current module capacity while aiming to become fully integrated in the near future. Similarly, Waaree Energies is increasing its annual manufacturing capacity with a focus on both domestic supply and export opportunities.
"The PLI scheme is not just about reducing imports—it’s about building a solar manufacturing ecosystem that can power India’s energy future and create thousands of green jobs."
Reducing Dependence on China
India has long depended on China for its solar module imports, with over 80% of installed modules previously sourced from Chinese manufacturers. This not only exposed the country to geopolitical and supply chain risks but also limited the growth of local industry.
The PLI scheme aims to reverse this trend by a robust domestic ecosystem. With increasing domestic capacity, India is expected to drastically cut down imports and become a significant player in the global solar supply chain.
Targets and Impact
The scheme aims to add 65 GW of integrated manufacturing capacity over the next few years. The government has already completed multiple rounds of PLI allocation, with over 39 GW capacity sanctioned under two tranches. Officials say the PLI scheme could generate over 1.5 lakh direct and indirect jobs and spur nearly ₹94,000 crore in private investments. Apart from job creation, the move is expected to lead to lower costs for solar projects, improved quality of domestic modules, and stronger energy security.
Looking Ahead
With strong participation from major industrial players and continued government backing, the PLI scheme is positioning India as a future global hub for solar manufacturing. Experts believe this could not only help meet domestic demand but also open up new export opportunities to regions like Africa, Southeast Asia, and Europe.
The PLI scheme represents more than just financial incentives it’s a strategic step towards energy independence, economic growth, and climate responsibility. As India continues to scale its renewable energy ambitions, domestic manufacturing will play a crucial role in powering the future—both literally and economically.
