en.Wedoany.com Reported - India's clean energy journey is undergoing a profound transformation, with the Approved List of Models and Manufacturers (ALMM) mandate emerging as a key catalyst in this process. By requiring government-funded projects to use domestically manufactured products, this policy has driven a strategic shift in India's solar manufacturing sector.
For years, over 80% of India's solar cell demand relied on imports, primarily from China, exposing the industry to risks of supply chain disruptions, price volatility, and geopolitical uncertainties. As India moves toward its target of achieving 500 GW of non-fossil fuel installed capacity by 2030, reducing this dependence has become a strategic necessity. The ALMM framework encourages long-term investment in manufacturing by creating a more predictable demand environment.
The results are already evident. Driven by policies such as the Production Linked Incentive (PLI) scheme, the ALMM framework, and growing private sector investment, India's solar module manufacturing capacity has expanded from less than 15 GW in 2020 to nearly 210 GW by the end of 2025, while domestic solar cell capacity has reached approximately 27 GW. However, India still faces significant gaps in upstream manufacturing, particularly in wafers, ingots, and polysilicon, with cell manufacturing capacity far below module capacity, revealing growing supply chain bottlenecks.
Technological transformation is accelerating. Manufacturers are rapidly transitioning from polycrystalline modules to high-efficiency TOPCon and heterojunction (HJT) technologies, with module efficiencies exceeding 23%. The Indian government has committed nearly 240 billion rupees under the PLI scheme for high-efficiency solar photovoltaic manufacturing to support domestic capabilities across the solar value chain and attract private sector investment. Industry estimates suggest that each GW of manufacturing capacity can create thousands of direct and indirect jobs, with regions such as Gujarat, Tamil Nadu, Andhra Pradesh, and Odisha emerging as key manufacturing hubs.
In 2024 alone, India added nearly 25 GW of solar installed capacity, with hundreds of additional gigawatts expected over the next decade to meet energy transition goals. The true success of the ALMM framework will be measured by whether India can establish itself as a globally trusted destination for clean energy technology manufacturing. As India continues to expand its solar deployment, this policy is helping answer the question of how much value creation remains within the country, serving as a crucial cornerstone in India's broader industrial growth strategy.
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