India readies production-linked incentives for polysilicon to cut China reliance

India is set to extend its manufacturing incentive push deeper into the solar supply chain with a new production-linked incentive (PLI) scheme for polysilicon, according to the country's top clean energy ministry official.

Santosh Kumar Sarangi, secretary at the renewable energy ministry, said at a Confederation of Indian Industry event in New Delhi that the proposed scheme would encourage domestic polysilicon manufacturing. Polysilicon, a key raw material for solar photovoltaic panels, is currently imported entirely from China.

The move is part of a broader strategy to create an integrated solar manufacturing ecosystem spanning modules, cells, wafers, ingots, and polysilicon — segments that are globally dominated by Chinese producers. India has already committed 240 billion rupees ($2.52 billion) in manufacturing-linked incentives for solar panel and cell production.

Sarangi said the new scheme could cover more than 10 GW of production capacity, though he did not disclose the size of the financial incentive. The country is targeting 500 GW of non-fossil fuel power capacity by 2030, and the ministry has increasingly focused on local manufacturing as developers ramp up solar installations.

India has already built more than 200 GW of solar panel manufacturing capacity and over 32 GW of solar cell capacity, with another 100 GW of cell capacity expected within about a year. The country is also targeting at least 80 GW of solar ingot and wafer manufacturing capacity by June 2028.

Sarangi said deeper domestic manufacturing would strengthen India's clean energy ambitions and industrial competitiveness. Polysilicon also has semiconductor applications, potentially broadening the economic benefits of new investment beyond solar manufacturing.