India Plans PLI Scheme for Polysilicon Manufacturing to Boost Solar Supply Chain

India is preparing a production-linked incentive (PLI) scheme to encourage domestic polysilicon manufacturing, according to a Reuters report. The proposed initiative is aimed at strengthening the country's solar manufacturing ecosystem and reducing dependence on imports.

The announcement was made by Santosh Kumar Sarangi, Secretary at the Ministry of New and Renewable Energy, during a Confederation of Indian Industry event in New Delhi. The move aligns with India's broader objective of expanding clean energy capacity and building a more integrated solar supply chain.

India Polysilicon PLI Scheme and Solar Manufacturing Plans

The proposed PLI scheme would extend India's manufacturing incentive programme deeper into the solar value chain. According to Sarangi, the scheme is being designed to support domestic polysilicon production capacity.

While the financial outlay of the scheme has not been disclosed, it could cover more than 10 GW of production capacity. The initiative is expected to support local manufacturing and reduce reliance on imported raw materials used in solar photovoltaic panels.

Why Is India Focusing on Domestic Polysilicon Production?

Polysilicon is a critical raw material used in the manufacturing of solar photovoltaic panels. At present, India relies entirely on imports from China for its polysilicon requirements.

The renewable energy ministry has increasingly focused on developing domestic manufacturing capabilities as solar installations continue to expand across the country. This approach is intended to reduce exposure to imported equipment while strengthening the domestic supply chain.

India's Solar Manufacturing Capacity Expansion

India has already introduced ₹240 billion in manufacturing-linked incentives for solar panel and solar cell production. According to Sarangi, the country has built more than 200 GW of solar panel manufacturing capacity and more than 32 GW of solar cell manufacturing capacity.

An additional 100 GW of solar cell capacity is expected to become operational within about a year. These developments form part of broader efforts to expand domestic clean energy manufacturing capabilities.

India Solar Supply Chain Strategy and 2030 Clean Energy Target

India is targeting 500 GW of non-fossil fuel power capacity by 2030. The proposed polysilicon incentive scheme is part of a strategy to create an integrated solar manufacturing ecosystem covering modules, cells, wafers, ingots and polysilicon.

These segments are currently dominated globally by Chinese producers. India is also aiming to achieve at least 80 GW of solar ingot and wafer manufacturing capacity by June 2028, supporting further localisation across the solar supply chain.

Read More: Indian Economy to Reach $5 Trillion.

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Conclusion

The proposed polysilicon PLI scheme marks another step in India's efforts to strengthen domestic clean energy manufacturing. The initiative is expected to support the development of local polysilicon production and reduce import dependence in a key segment of the solar industry.

It also complements existing investments in solar panel, cell, ingot and wafer manufacturing capacity. According to Sarangi, greater domestic manufacturing capability could enhance India's clean energy ambitions, industrial competitiveness and potential semiconductor-related opportunities linked to polysilicon production.

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