India has built one of the world’s largest solar manufacturing bases. The next phase is about where that
capacity exports to, and which destinations become part of the supply chain.
By June 2026, India’s solar module manufacturing capacity crossed 200 gigawatts annually, with ALMM-approved capacity exceeding 190 GW and domestic solar cell manufacturing capacity crossing 30 GW. Five years ago, India’s manufacturing was largely limited to module assembly with heavy reliance on imported cells and wafers from China. The transformation has been rapid: driven by the Production Linked Incentive scheme, Basic Customs Duty on imports, and strong domestic demand, India has built a vertically integrated solar supply chain spanning polysilicon, wafers, cells, and modules.
The export trajectory reflects the same momentum. Indian solar module exports surged 65% in the year to early 2026. The United States accounted for 10.4 GW shipped in the first nine months of 2025 alone – the overwhelming primary destination, driven by procurement policies favouring non-Chinese suppliers. Europe absorbed 1.6 GW in the same period, with tender specifications increasingly requiring manufacturing location disclosure and non- Chinese origin. India’s energy investment is projected to reach a record $170 billion in 2026 by the IEA, with solar PV investment growing 25% annually over the past five years.
The forward question is about geographic diversification of that export base. Current concentration – with the
overwhelming majority of Indian solar exports flowing to the US – creates dependency risk that Indian manufacturers are actively managing. Africa, the Middle East, and Southeast Asia are emerging as priority export diversification markets in 2026, with integrated gigafactories now capable of producing at cost structures competitive with Chinese suppliers for these markets.
For destination markets and development organisations, the strategic opening is in supply chain partnership rather than simply import sourcing. The Indian manufacturers building international market positions are also evaluating where to establish commercial offices, warehouse and distribution capacity, and in some cases regional production hubs to serve local content requirements. These are investment decisions, not just trade relationships.
India’s solar manufacturing story is well understood as a domestic capacity narrative. Its international dimension – export diversification, supply chain partnership, and regional production – is the chapter that is just beginning to be written.
Nueconomy tracks outbound signals from India’s solar manufacturing sector through CUE.
If you are a destination market or development organisation focused on engaging India solar manufacturing
export diversification and investment, we can help you identify the right companies.
hello@nueconomy.co · thenueconomy.com
Related: India’s Outbound FDI Surge
