As the ‘Make in India’ initiative completes ten years, it solidifies its role as a catalyst for investment, innovation, and the development of top-tier infrastructure, transforming India into a manufacturing, design, and innovation hub.
A significant aspect of the initiative is its ongoing commitment to nurturing a strong manufacturing sector in renewable energy. The government aims to promote and incentivize domestic production within the sector, positioning the country to meet local demand and tap into global markets through exports, thus establishing India as a prominent player in renewable energy manufacturing.
To support domestic manufacturing of renewable energy equipment – including solar photovoltaic (PV) modules, cells, and upstream components like ingots, wafers, and polysilicon – the government has implemented various initiatives. These also encompass the production of wind turbines, electrolysers for green hydrogen, and battery energy storage systems essential for utility-scale electricity storage.
The government’s strategy includes a blend of financial, fiscal, and policy measures designed to enhance local production. Financial incentives like the production linked incentive (PLI) scheme promote the establishment of integrated manufacturing units for solar PV modules and their components.
Additional support mechanisms include viability gap funding for battery energy storage projects and incentives for manufacturing electrolysers and green hydrogen as part of the national green hydrogen mission.
Fiscal incentives consist of reduced customs duties on materials necessary for domestic manufacturing, exemptions on import duties for certain capital goods needed for solar PV production, and basic customs duties on imports of solar PV modules, cells, and inverters.
Since 2014, India’s capacity for solar PV module manufacturing has surged from 2.3 GW to around 67 GW, driven by various initiatives under the ‘Make in India’ program. The expansion enables India to fulfill its domestic demand while also engaging in exports. As reported by pib.gov.in, solar PV module production capacity surged from 8 GW in 2021 to 67 GW annually in just 3.5 years.
