How India’s Targets Swadeshi Solar Cells by 2028 will Move the Industry Towards Indigenous Wafers and Ingots

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.

November 18, 2025. By News Bureau

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Vipin Tiwari

AXITEC Energy India Pvt. Ltd.

Swadeshi solar cells

Indigenous Wafers and Ingots

MNRE

ALMM

Next-generation technologies

Industrial Transformation

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 percent 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.

Challenges on the Road Ahead

The ambition is bold and so are the obstacles. Setting up ingot and wafer plants requires cutting-edge technology, heavy capital investment, and ultra-clean manufacturing environments. The energy intensity of the process also poses a challenge: ingot casting and wafer slicing consume large amounts of electricity, which must ideally come from renewable sources to maintain the green credentials of the final product.

Cost competitiveness remains another concern. Chinese producers enjoy massive economies of scale and decades of accumulated expertise. Indian plants, at least initially, will struggle to match those price points. Policymakers and industry experts alike recognise that consistent policy support, not just one-time incentives will be crucial to sustain early-stage investments.

There is also the question of raw materials. Even if India builds ingot and wafer facilities, the feedstock polysilicon still needs to be produced domestically to achieve full independence. While some projects are under discussion, most are still at the proposal stage.

Yet the potential upside outweighs the risks. A robust domestic supply chain could transform India from an assembly base into a true manufacturing hub. According to the Indian Solar Manufacturers Association, the localisation of wafers and ingots could generate tens of thousands of new jobs across the country from engineers and technicians to logistics and ancillary suppliers.

It also offers an opportunity to attract global investors seeking an alternative to China. India’s open FDI policy for renewables and the promise of a rapidly growing domestic market make it an attractive destination for joint ventures and technology transfers.

If achieved, this will be one of the most significant industrial transformations in India’s clean energy journey, a step that aligns perfectly with the country’s broader target of 500 GW of non-fossil fuel capacity by 2030. India’s solar ambitions have always been big. But now, they are becoming deeper. The goal of “Swadeshi Solar Cells by 2028” represents not just a manufacturing milestone, but a strategic pivot from dependence to dominance, from assembly to innovation.

- Vipin Tiwari, Corporate Strategy Manager, AXITEC Energy India Pvt. Ltd.