India’s ambition to become a major global manufacturing hub for solar panels and batteries is facing a supply-chain challenge: the country still depends heavily on China for the specialised machinery and technology required to manufacture critical components. Although India has rapidly expanded solar module production, its capabilities in upstream manufacturing, including polysilicon, ingots, wafers and solar cells, remain less developed.
The vulnerability has become more urgent after China introduced an interim pre-export registration requirement for specified solar technology transfers on October 16, 2026, while proposing restrictions on exports of 12 photovoltaic manufacturing technologies. Indian manufacturers are now exploring partnerships with equipment suppliers in Germany, Japan, South Korea, Italy and Australia as they seek alternatives to Chinese machinery and technical support. The proposed restrictions are expected to be considered by the Chinese government after November 15.
China’s Export Curbs Raise Concerns for India’s Solar Manufacturing Plans
China’s proposed export restrictions could complicate India’s efforts to develop a more integrated domestic solar manufacturing industry.
The restrictions cover selected technologies and equipment used in the production of polysilicon, wafers and solar cells. These are essential stages of the solar photovoltaic manufacturing process, and access to specialised machinery is necessary for companies seeking to establish or expand production facilities.
Indian manufacturers have reportedly faced intermittent restrictions this year on access to Chinese manufacturing technology, equipment and technical support. The latest measures have added uncertainty for companies planning upstream manufacturing investments.
The concern is particularly significant because India has built substantial solar module manufacturing capacity, but much of the machinery and technology needed for deeper supply-chain integration continues to come from overseas.
The proposed restrictions are not the same as a blanket ban on all solar equipment exports. Their impact will depend on the final scope of the controls, the technologies covered and how Chinese authorities implement them.
India Has Expanded Solar Module Capacity, but Upstream Manufacturing Remains Limited
India’s solar manufacturing industry has expanded considerably over recent years, particularly in the production of finished solar modules.
However, manufacturing modules is different from producing the components that go into them. A solar module typically contains solar cells, which are manufactured using wafers. Wafers are produced from ingots, which in turn are made using polysilicon.
India’s manufacturing capabilities are uneven across these stages. Module production has expanded faster than domestic production of several upstream inputs, leaving manufacturers dependent on imports.
According to Moneycontrol, Union Minister for New and Renewable Energy Pralhad Joshi said India’s solar cell manufacturing capacity was expected to reach 70 GW by December 2026 and exceed 100 GW by May-June 2027.
These projections indicate that domestic cell manufacturing is expanding, but capacity additions alone will not eliminate dependence on imported equipment and technology.
Why ingots, wafers and polysilicon matter
The upstream stages of solar manufacturing are important because they determine how much value can be added domestically.
- Polysilicon: High-purity silicon used as the basic material for solar manufacturing.
- Ingots: Solid blocks of silicon produced from polysilicon.
- Wafers: Thin slices cut from ingots and used to manufacture solar cells.
- Solar cells: Photovoltaic components that convert sunlight into electricity.
- Solar modules: Finished panels assembled using interconnected solar cells.
India’s limited capabilities in some upstream segments mean that expanding module and cell production does not automatically create a fully domestic supply chain.
Developing these stages requires specialised machinery, engineering knowledge, high-quality materials and substantial investment.
Indian Manufacturers Scout for Alternatives to Chinese Machinery
To reduce exposure to Chinese export restrictions, Indian solar manufacturers are exploring partnerships with equipment and technology suppliers in other countries.
Industry representatives have identified Germany, Japan, South Korea, Italy and Australia among the markets being considered for alternative sourcing.
Subrahmanyam Pulipaka, chief executive officer of the National Solar Energy Federation of India (NSEFI), told Moneycontrol that manufacturers were exploring partnerships with suppliers in these countries.
However, finding alternatives is not straightforward. Some international suppliers also depend on Chinese manufacturing for parts of their equipment supply chains, meaning that changing the supplier’s country does not necessarily eliminate exposure to China.
Amit Manohar, secretary general of the Indian Solar Manufacturers Association (ISMA), said companies were increasingly exploring partnerships across Europe, Japan, Taiwan and other markets.
He also highlighted the importance of diversified sourcing, stronger in-house engineering capabilities and global technology partnerships in building supply-chain resilience.
Building domestic machinery capabilities could take years
India cannot immediately replace its dependence on imported solar manufacturing equipment with locally produced machinery.
Pulipaka told Moneycontrol that developing domestic machinery-making capabilities could take at least three years in the best-case scenario and up to five years under more realistic conditions.
This timeline reflects the complexity of manufacturing high-precision equipment used in solar production. Machinery suppliers must develop specialised engineering capabilities, ensure consistent performance and provide technical support to manufacturers.
Domestic companies will also need access to experienced engineers, testing facilities, research infrastructure and customers willing to adopt locally manufactured equipment.
More Than 90% of High-End Solar Manufacturing Equipment Is Imported
The dependence on foreign machinery extends across several stages of solar manufacturing.
A January 2026 report by The Energy and Resources Institute (TERI), cited by Moneycontrol, found that more than 90% of high-end solar manufacturing equipment, including furnaces, PECVD and ALD tools, and diamond-wire saws, is imported.
These machines are used in processes such as silicon processing, wafer production and solar cell manufacturing.
A separate study published by the Council on Energy, Environment and Water (CEEW) in May 2026 also highlighted the structural challenges facing Indian solar cell manufacturers.
The study found that domestic solar cell manufacturing was nearly 40% more expensive than production in China. It estimated that capital expenditure for Indian manufacturers was approximately 109% higher than that of Chinese counterparts.
The report also highlighted dependence on imported machinery and technical expertise. According to the study, process optimisation for newer TOPCon manufacturing lines can take around 12 months, compared with approximately seven to eight months for older PERC technology.
| Manufacturing challenge | Reported finding |
|---|---|
| High-end solar equipment imported | More than 90% |
| Cost of Indian solar cell manufacturing compared with China | Nearly 40% higher |
| Capital expenditure compared with Chinese counterparts | Approximately 109% higher |
| TOPCon process optimisation | Around 12 months |
| PERC process optimisation | Around 7-8 months |
These differences highlight why equipment dependence is not only a procurement issue. It also affects manufacturing costs, technology upgrades and the ability of Indian companies to compete with established international producers.
China’s Pricing Strategy Adds Pressure on Indian Manufacturers
Apart from export restrictions, Indian manufacturers face competitive pressure from China’s pricing power across the solar supply chain.
Pulipaka told Moneycontrol that Chinese suppliers had raised solar cell prices while reducing module prices when Indian manufacturers expanded module production. This squeezed margins for domestic manufacturers.
He said a similar pattern had emerged as India increased its solar cell manufacturing capacity. Chinese suppliers raised wafer prices while lowering cell prices, increasing input costs for Indian cell manufacturers while making imported cells more competitive.
Such price movements can create challenges for companies investing heavily in domestic manufacturing facilities. Even when Indian manufacturers secure machinery and establish production lines, they must compete against international suppliers operating at much larger manufacturing scales.
The CEEW study also identified economies of scale, higher capital expenditure and expensive consumables as important reasons behind India’s manufacturing cost disadvantage.
This means that reducing import dependence will require improvements in both machinery availability and the overall economics of domestic production.
Battery Manufacturing Faces a Similar Dependence on China
The challenge is not limited to solar energy. India’s battery manufacturing industry also depends heavily on imported machinery, particularly from China.
Battery-cell production involves several specialised manufacturing processes, including electrode preparation, coating, calendaring, slitting, electrolyte filling and cell formation.
Each stage requires dedicated equipment, and establishing a domestic manufacturing ecosystem will involve significant engineering and capital investment.
According to an analysis by the International Institute for Sustainable Development (IISD), India imported approximately $1.5 billion worth of battery-cell manufacturing machinery from China in 2022.
China was a leading supplier across several equipment categories, including calendaring, slitting, electrolyte-filling and cell-formation machinery.
This dependence creates a potential vulnerability as India attempts to expand battery production for electric vehicles and energy storage systems.
If access to specialised equipment becomes restricted or more expensive, companies could face delays in establishing production facilities and scaling manufacturing capacity.
What India Needs to Build an Independent Manufacturing Ecosystem
Reducing dependence on China will require a combination of international partnerships, domestic research and investment in capital-goods manufacturing.
India could initially diversify equipment sourcing by working with suppliers in Europe and East Asia. However, manufacturers will also need to assess the extent to which these suppliers depend on Chinese components and technology.
Developing domestic machinery companies is another important priority. Local equipment manufacturers could gradually move from producing basic machinery to more specialised systems used in wafer and cell production.
Industry-academia partnerships, pilot manufacturing facilities and technical training programmes could help develop the engineering expertise needed for this transition.
Policy support will also matter. Incentives for capital-goods manufacturers, access to testing infrastructure and stronger collaboration between solar producers and machinery suppliers could help create a viable domestic market.
The battery sector will require similar efforts, particularly in equipment used for advanced cell manufacturing and energy storage systems.
The Bigger Picture
India’s clean-energy manufacturing strategy is entering a more demanding phase. Expanding solar module and battery production is important, but long-term supply-chain resilience depends on controlling more of the technology, machinery and components required to manufacture these products. China’s proposed export controls have highlighted how access to specialised equipment can influence the pace and cost of India’s industrial expansion.
Diversifying suppliers can reduce immediate risks, but it will not automatically create domestic manufacturing capabilities. India must develop engineering expertise, invest in capital goods and improve the competitiveness of local equipment producers. The transition could take several years, making consistent policy support and private-sector investment important to the country’s broader clean-energy ambitions.
Looking Ahead
The next major development will be China’s decision on the proposed restrictions covering 12 photovoltaic manufacturing technologies after November 15, 2026. The final rules will help determine how much access Indian manufacturers retain to Chinese equipment and technical support. Meanwhile, partnerships with suppliers in Germany, Japan, South Korea, Italy and other markets could provide alternative sourcing options, although the extent of their independence from Chinese supply chains will remain an important consideration.
Over the longer term, India’s ability to reduce dependence will depend on how quickly domestic manufacturers can build competitive machinery and technology capabilities. The solar industry will need to strengthen production across polysilicon, ingots, wafers and cells, while battery manufacturers will need reliable equipment for large-scale cell production. Until these capabilities mature, India is likely to continue balancing domestic manufacturing ambitions with its reliance on international suppliers.
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