New Delhi, November 3: India’s solar manufacturing industry could attract $89 billion in new investments, generate more than 32 lakh direct and indirect jobs and eliminate the country’s dependence on imported solar components by 2047, according to a new report released by the Indian Solar Manufacturers Association (ISMA).
The report, titled Vision 2047: Solar Manufacturing from Polysilicon to Power Plant, outlines a long-term strategy for developing an integrated domestic solar manufacturing ecosystem. It envisages India’s transition from a market primarily focused on solar module assembly to a globally competitive manufacturing base covering the entire photovoltaic value chain, including polysilicon, ingots, wafers, cells and modules.
The findings highlight the economic and industrial opportunities associated with India’s expanding renewable energy sector. However, achieving these projections will depend on sustained investments, predictable government policies, technological development and the ability of domestic manufacturers to compete in international markets.
Solar capacity could reach 2,275 GW by 2047
Under the Vision 2047 scenario, India’s installed solar power capacity could reach 2,275 gigawatts (GW) by 2047, creating substantial demand for domestically manufactured solar equipment and components.
To support this expansion, the report projects manufacturing capacities of 3,266 GW for solar modules, 2,796 GW for cells, 2,479 GW for ingots and wafers, and 2,156 GW equivalent for polysilicon by 2047.
The projections indicate a significant expansion of India’s solar manufacturing infrastructure over the next two decades. The report estimates that domestic manufacturing could become capable of meeting the country’s requirements across the entire solar value chain within the next decade, with further expansion supporting export opportunities.
A central element of the proposed transition is the development of upstream manufacturing capabilities. While module assembly represents the final stage of solar panel production, manufacturing polysilicon, ingots, wafers and cells requires additional industrial infrastructure, specialised technologies and substantial capital investment.
Developing these capabilities domestically would allow Indian manufacturers to capture a greater share of the value generated through solar equipment production and reduce their exposure to international supply-chain disruptions
Employment could increase eightfold
The report identifies employment generation as one of the major potential benefits of expanding domestic solar manufacturing. Total direct and indirect manufacturing-related employment could increase from approximately 4.1 lakh jobs at present to 8.1 lakh by 2030 and 32.3 lakh by 2047. This would represent nearly an eightfold increase over current employment levels.
Direct employment within solar photovoltaic manufacturing facilities is projected to rise from approximately 1.4 lakh jobs to 11.1 lakh by 2047. Significantly, the report estimates that nearly 68% of direct manufacturing employment could be concentrated in upstream activities, including solar cell, wafer and polysilicon production, by 2047.
This shift would reflect a transformation in the structure of India’s solar industry, with employment increasingly linked to technologically advanced manufacturing processes rather than predominantly downstream assembly operations.
The expansion would also require a larger technically skilled workforce, including engineers, manufacturing specialists, equipment operators and professionals involved in advanced photovoltaic technologies.$89 billion investment opportunity
According to ISMA, developing the proposed manufacturing ecosystem would require approximately $89 billion in new investments by 2047, equivalent to an average annual investment of around $4.3 billion between 2027 and 2047.
Nearly 70% of the projected investment would be directed towards upstream manufacturing, particularly polysilicon, wafers and solar cells. These segments are central to establishing an integrated manufacturing industry capable of supporting India’s domestic solar deployment and export ambitions.
The report notes that the government’s Production Linked Incentive (PLI) scheme has already attracted approximately $8.4 billion in investments as of June 2026. It estimates that every dollar provided through incentives has mobilised approximately four dollars in private investment.
While these figures indicate investor interest in domestic solar manufacturing, the scale of the proposed expansion would require continued capital mobilisation, timely commissioning of manufacturing facilities and commercially viable production across the value chain.
Eliminating solar imports by 2041
Reducing dependence on imported solar components is another major objective of the Vision 2047 strategy. The report estimates that India’s annual solar import bill, currently approximately $4.4 billion, could decline to zero by 2041 if the proposed manufacturing expansion is successfully implemented.
This projection assumes that domestic manufacturing capacity develops sufficiently across all major segments of the photovoltaic supply chain to meet the country’s requirements.The report also envisages India emerging as a major international supplier of solar equipment. Under the Vision 2047 scenario, the country could account for 26.5% of global solar module supply by 2047. By comparison, the report projects a share of approximately 5.9% by 2030 under the current policy scenario.
These projections illustrate the potential scale of India’s solar manufacturing ambitions, although their realisation would depend on global market conditions, manufacturing competitiveness, technological advancements and the growth of international demand.Policy certainty and upstream manufacturing critical
Amit Manohar, Secretary General, ISMA, said India’s solar manufacturing sector was at an important stage of development, with opportunities to establish a globally competitive and integrated industrial ecosystem.
“The potential to attract USD 89 billion in investments, generate over 32 lakh jobs and significantly reduce import dependence underscores the strategic importance of strengthening domestic manufacturing across the entire solar value chain,” Manohar said.
He emphasised that achieving these objectives would require sustained policy support, a predictable demand pipeline, investment in upstream manufacturing and continued efforts to improve India’s international competitiveness.
The report identifies several policy priorities, including maintaining implementation timelines under the Approved List of Models and Manufacturers (ALMM), completing PLI-supported manufacturing projects and expanding domestic demand through rooftop solar installations and agricultural solarisation programmes.It also calls for investments in domestic manufacturing equipment, advanced solar cell technologies, technical skills and recycling infrastructure. Developing export markets would be equally important as manufacturing capacity expands beyond domestic requirements.
The proposed transition follows a phased approach. Solar cell manufacturing is expected to expand through 2030, followed by greater development of wafer manufacturing capabilities through 2035. The subsequent period would focus on establishing a fully integrated domestic solar manufacturing value chain.
The ISMA report presents an ambitious industrial roadmap rather than a forecast of guaranteed outcomes. Its central proposition is that India’s long-term solar expansion could support a much larger domestic manufacturing industry if investments, technology development and policy implementation advance together.For India, the challenge will be to translate rising solar power demand into competitive domestic production across the entire value chain, enabling the country to strengthen its energy security while establishing a larger presence in global solar equipment markets.
