Last Updated on November 25, 2025 by Author
When India declared its ambition to have “swadeshi solar cells” by 2028, it was not just about manufacturing more panels, it was about reclaiming the entire solar value chain. For years, India has assembled solar modules using imported cells, wafers, and ingots, largely sourced from China. But with the government now setting its sights on localising these upstream components, the country’s renewable energy story is entering a decisive new phase: one of self-reliance, strategic depth, and industrial maturity.
India today ranks among the world’s largest solar markets, yet the backbone of its manufacturing remains import-dependent. Over 90% of the world’s ingot and wafer production comes from China, leaving most other countries including India reliant on foreign supply. Even the most advanced Indian module makers, while boasting impressive gigawatt-scale plants, often rely on imported wafers or diffused cells.The Ministry of New and Renewable Energy (MNRE) now aims to change that equation.
To make this target real, the government is deploying a mix of regulation and incentives. The Approved List of Models and Manufacturers (ALMM), which currently applies to solar modules, is being extended to wafers with the proposed ALMM List-III coming into force from June 1, 2028. Once active, only those wafers made by approved domestic manufacturers will be eligible for use in government-backed projects.
In parallel, Domestic Content Requirement (DCR) rules are being tightened. Solar cells made using imported diffused wafers will no longer qualify as “domestic,” effectively nudging the industry to source upstream components within India. And the Production Linked Incentive (PLI) scheme already worth ₹24,000 crore for high-efficiency modules is now encouraging integrated facilities that include ingot and wafer production.
This localisation drive is about far more than tariffs and trade balances. It is about capturing value, creating jobs, and securing energy sovereignty. When India imports wafers and ingots, it loses out on the most value-added and technically sophisticated part of the chain. By moving upstream, India can retain far more of that economic value within its borders.
Moreover, it strengthens resilience. The COVID-19 pandemic and subsequent supply chain shocks exposed just how vulnerable global manufacturing has become to concentrated geographies. Building a domestic wafer and ingot base means India can avoid project delays and cost spikes tied to international disruptions.
There is also a technological advantage at stake. By controlling wafer size, cell architecture, and quality standards, Indian manufacturers can align with next-generation technologies like TOPCon and HJT cells, instead of being confined to imported specifications.
While India already boasts more than 64 GW of solar module capacity and around 12–15 GW of cell capacity, its wafer and ingot production remains negligible. That gap, however, is closing fast. Several large industrial groups including Adani Solar, Tata Power Solar, and Waaree Energies have announced plans for vertically integrated plants that include ingot and wafer manufacturing lines.
