India’s solar manufacturing capacity has expanded rapidly, with 242.7 GW of operating module capacity by Q2 2026, according to Rhodium Group’s Clean Investment Monitor. The report said India’s large domestic market could help absorb additional supply as US trade measures create challenges for Indian solar exports.
New Delhi, Sept 29: India’s solar manufacturing industry has expanded rapidly in recent years, with the country emerging as a major manufacturing base even as new US trade measures create challenges for exports. The latest Clean Investment Monitor from Rhodium Group shows that India’s share of global solar manufacturing investment has increased significantly, while domestic manufacturing capacity continues to expand.
According to the report, India had 242.7 GW of operating solar module capacity by Q2 2026, compared with 40.5 GW of cell capacity and 2.5 GW of wafer capacity. The figures highlight the rapid expansion of downstream module manufacturing, while also pointing to a significant gap between module and upstream cell and wafer production. Rhodium Group said recent investment announcements indicate that this gap could gradually narrow, with announced cell and wafer capacity increasing substantially.
The report noted that India’s solar manufacturing expansion has been supported by policies requiring the use of domestically manufactured solar equipment through the Approved List of Models and Manufacturers (ALMM) framework. The country is also seeing greater investment in upstream manufacturing, including cells, wafers and polysilicon. Rhodium said announced wafer capacity increased to 24 GW by Q2 2026, while announced cell capacity rose to 39.3 GW and announced polysilicon capacity reached 10 GW.
At the same time, Indian solar manufacturers face pressure from the US market. The US Department of Commerce announced final affirmative determinations in September 2026 in anti-dumping and countervailing duty investigations covering crystalline silicon photovoltaic cells from India and other countries. The measures add to the trade barriers facing Indian manufacturers seeking access to the US market.
Rhodium Group has previously noted that preliminary US trade measures had effectively restricted Indian solar exports to the US, while domestic manufacturers were also dealing with excess downstream capacity. Its latest analysis said India’s large domestic market provides an alternative demand base, although manufacturers could face pressure on margins as they adjust to changing export conditions. The report also noted that India’s solar manufacturing investment rose sharply relative to other markets, making the country an increasingly important location for global clean-technology manufacturing.
India’s expanding domestic solar market and growing manufacturing ecosystem provide an important demand base for the industry, while manufacturers face the need to diversify export markets and strengthen upstream production amid changing global trade conditions.

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