Politics · India Bureau
India must ramp up solar manufacturing to counter Chinese export restrictions
Industry leaders are urging the Indian government to accelerate domestic solar equipment production as China moves to restrict exports of critical photovoltaic manufacturing technologies. The move risks disrupting India's renewable energy ambitions unless domestic capacity is expanded urgently.
LSN India ·
China's proposed curbs on exports of 12 key technologies used in solar module manufacturing have triggered alarm in India's renewable sector, with senior executives calling for stronger government incentives to boost domestic production capacity.
Chetan Shah, Chairman and Managing Director of Solex Energy, warned that the restrictions could create supply bottlenecks across India's solar industry at a critical juncture. With China controlling an estimated 75-90 per cent of the global solar supply chain, the export restrictions pose a significant risk to India's renewable energy expansion plans.
Shah highlighted a concerning capacity imbalance in India's solar sector. As of June 2026, domestic module manufacturing capacity stood at approximately 262 GW, while cell manufacturing capacity lagged significantly at just 37 GW. This disparity could prove problematic if Chinese export curbs take effect.
"Without timely expansion of domestic cell capacity, India could face supply shortages for solar modules, project delays and pressure on tariffs," Shah said, speaking on the sidelines of the Renewable Energy India Expo 2026 in Greater Noida.
Industry observers note that China's restrictions, ostensibly justified on national security grounds given the dual-use nature of the technologies in aerospace and defence applications, underscores the need for India to develop self-reliant manufacturing capabilities in critical renewable energy infrastructure.