India’s Solar Manufacturing Push Faces China’s Scale and Cost Lead
India added 50.6 GW of solar module capacity and 9.7 GW of cell capacity in the first half of 2026, bringing cumulative capacity to 261.7 GW for modules and 36.6 GW for cells. Module capacity is now more than seven times domestic cell capacity, highlighting continued upstream dependence. China remains dominant across polysilicon, wafers, cells, modules, and equipment, and the IEA expects it to supply more than 70% of projected global module demand in 2030 under its Stated Policies Scenario.
India’s module capacity reached 261.7 GW by June 2026, after 50.6 GW was added in H1, while cell capacity stood at 36.6 GW following 9.7 GW of additions. That gap means panel assembly is far larger than domestic cell production.
The IEA sees China producing over 70% of global module demand in 2030 under stated policies, with strengths spanning polysilicon, wafers, cells, modules, equipment and components. India’s cost challenge includes capital, consumables, imported machinery, skills and R&D.
India’s solar buildout may affect manufacturers, workers, installers and electricity consumers. More module capacity could create assembly jobs and lower panel costs, but upstream reliance on imported cells and materials may leave value and supply security with foreign producers. If domestic cell and wafer production expands, it could strengthen energy resilience and local industry; if not, price and technology shifts may keep Indian firms dependent on Chinese inputs.