India's Solar Manufacturing Sector Set for Growth

India's solar equipment manufacturing sector is set for significant growth, with an expected capital expenditure of nearly ₹1 lakh crore over the next two to three years. CareEdge Ratings anticipates that this expansion will attract about ₹70,000 crore in debt funding, primarily for increasing polysilicon and wafer manufacturing capacities. As of September 2024, India's renewable energy capacity reached 155 GW, of which solar power accounted for 91 GW, bolstered by strong policy support and competitive tariffs. Future projections indicate annual installations will exceed 35 GW in the next two years, with an emphasis on rooftop solar and hybrid systems contributing significantly. The Indian government has implemented protective measures like customs duties on imported solar equipment to support domestic manufacturers against competitive pricing from China. This robust growth trajectory is expected to enhance India's renewable energy capabilities and align with its long-term growth objectives.