The statement came after a report indicated that India is finalizing a $1 billion capital subsidy plan to strengthen its solar manufacturing industry. The report also highlighted that the plan will focus on domestic producers of wafers and ingots, which are among the weakest segments of India’s solar industry. The plan is expected to be presented to the cabinet next month and has the backing of senior advisors in the Prime Minister’s office.
A report by the Global Trade Research Initiative (GTRI), published in October 2024, stated that India, like the U.S. and European Union (EU), is heavily reliant on China for its solar industry. The report also pointed out that China’s export curbs on critical solar production equipment, introduced in January, have made it even more challenging for new solar cell manufacturing units to thrive in India. The GTRI report further warned that if India’s solar production capacity does not increase, import reliance could rise to $30 billion annually by 2030.