Policy Push or Market Pull? What India Needs to Scale Solar Manufacturing

India’s solar manufacturing story is not about choosing policy push or market pull. It is about weaving them together – policies that enable, markets that demand, and manufacturers that innovate.

November 21, 2025. By News Bureau

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India’s solar journey is at a defining crossroads. The country has transitioned from being a net importer of modules to building one of the largest and fastest-growing solar manufacturing infrastructures in the world. Yet, the question remains: will India’s solar manufacturing sector thrive through policy push or through market pull?

The answer lies in striking the right balance – leveraging policy for stability while letting innovation, demand, and competitiveness drive scale.

Significance of Solar Energy in India

India has set an ambitious target of 500 GW renewable capacity by 2030, with solar expected to contribute more than half.

Manufacturing is the backbone of this transition; it determines energy independence, job creation, and global competitiveness. The dependence on imports of cells, wafers, and critical raw materials makes the ecosystem vulnerable.

Scaling manufacturing is not just an economic imperative, but it’s a strategic necessity.

Policy Push: The Enabler

Government policies have provided a strong foundation for solar growth, especially demand creation, with a known trajectory for growth in the coming years, followed by

PLI Scheme (Production Linked Incentive): A game-changer in attracting large-scale investment in integrated manufacturing.
ALMM (Approved List of Models and Manufacturers): Protect local manufacturers against low-cost imports and dumping.
BIS Certification: Ensures quality standards and encourages domestic sourcing.
Green Hydrogen Mission & Energy Transition Targets: Drive additional demand for solar power, creating downstream manufacturing opportunities.

Key Insight: Policy push provides the guardrails, but it cannot replace competitiveness. Protectionism without innovation risks creating dependency on subsidies.

Market Pull: The Real Driver

While policy sets the stage, market dynamics ultimately decide scalability.

Falling Module Prices Globally: Buyers demand high efficiency at competitive costs.
Corporate Sustainability Goals: Large corporates and industries are voluntarily committing to clean energy as part of Net Zero targets.
Rising Consumer Awareness: Rooftop solar, EV charging, and decentralised grids are creating new markets.
Export Potential: With supply chain diversification, global buyers are looking at India as a credible hub.

Key Insight: Market pull creates resilience. Manufacturers that focus on efficiency, innovation, and cost reduction become globally competitive – without depending on policy cushions.

Automation and Innovation: The Game Changers

The future of solar manufacturing will be defined by how fast India adapts to technology, automation, and innovation.

Smart Manufacturing

Robotics in soldering, lamination, and module assembly.
AI-enabled quality control and predictive maintenance.
Digital twins for process optimisation.

Advanced Technologies

Transition from PERC to TOPCon and tandem technologies ahead.
Use of bifacial modules for higher yields.
Innovations in encapsulation materials, backsheets, and frames for longer life cycles and reducing weight.

Sustainable Practices

Recycling of end-of-life modules and reducing carbon footprint in production.
Energy-efficient factories powered by renewables.

The Human–Technology Synergy

While automation is vital, human expertise remains equally important. Highly skilled engineers, data scientists, and process managers are needed to design, operate, and continuously upgrade smart factories. Automation reduces errors, but it is human creativity that drives breakthroughs – whether in material science, product design, or customer solutions. Building this synergy between machines and people will decide how fast India can scale world-class manufacturing.

Key Insight: Automation not only reduces costs but also improves consistency, traceability, and scalability, which are critical for global competitiveness.

Hurdles on the Path

Despite progress, scaling solar manufacturing in India faces challenges:

High Capex for new technologies like HJT and perovskites.
External supply chain dependence on polysilicon, wafers, and critical raw materials.
Skilled manpower gap for operating advanced automated lines and fast-tracking innovation.
Export competitiveness against established Chinese and Southeast Asian players.

Addressing these challenges requires a mix of policy incentives, industry-led innovation, and global partnerships.

What India Needs: A Combo of Both

To achieve global leadership in solar manufacturing, India needs both policy push and market pull working together.

Policy Push ensures stability, quality, and investment confidence.
Market Pull ensures competitiveness, innovation, and global integration.

Recommended Actions

Strengthen local upstream supply chains for wafers and polysilicon.
Incentivise R&D and innovation through dedicated funds.
Build skill development programs aligned with advanced manufacturing needs.
Encourage export-oriented manufacturing to reduce dependency on domestic demand cycles.
Promote circular economy practices in recycling and reuse.

Additional Key Insights

India can leapfrog: By adopting cutting-edge technologies like TOPCon, HJT, perovskite tandem cells, and large wafer formats.
Collaboration is key: Partnerships between manufacturers, R&D labs, and policymakers can accelerate innovation.
Global positioning: India should aim not just for self-sufficiency but for becoming an export powerhouse, similar to how it built IT services leadership.

What’s Next?

India’s solar manufacturing story is not about choosing policy push or market pull. It is about weaving them together – policies that enable, markets that demand, and manufacturers that innovate.

Companies like Rayzon Solar, with their focus on automation, next-gen technologies, and sustainable practices, are contributing to this momentum. Yet, the opportunity is much larger than any single player; it is about building a national ecosystem that is globally respected.

If India gets this balance right, it won’t just meet its 2030 goals; it will redefine the global solar map.

- Chirag Nakrani, Managing Director, Rayzon Solar