Why in news?
Union Minister for New and Renewable Energy R.K. Singh announced that India plans to establish a fully indigenous solar manufacturing ecosystem by 2028. The goal is to produce modules, cells, wafers and ingots domestically and reduce dependence on imports.
What is the plan?
The initiative seeks to build a complete solar value chain in India, supported by Production‑Linked Incentive schemes, lower taxes and policy reforms. The country has already achieved 100 GW of module manufacturing capacity; the new phase will expand upstream capabilities.
Objectives
- Reduce import dependence: India currently imports most solar wafers, cells and ingots from China. Domestic production would enhance energy security.
- Boost manufacturing: Position India as a global hub for solar equipment, creating jobs and attracting investment.
- Promote innovation: Encourage research into high‑efficiency cells and sustainable materials.
Key features
- Incentives: Production‑linked incentives worth over ₹24,000 crore will support manufacturers. The Goods and Services Tax on solar modules has been reduced from 12 per cent to 5 per cent.
- Supportive schemes: Initiatives such as Surya Ghar Muft Bijli Yojana and the PM‑KUSUM scheme incentivise rooftop solar and solar pumps, benefiting farmers and households.
- Investment and jobs: The PLI scheme has already attracted investment commitments of ₹50,000 crore and created over 12,000 direct jobs.
Relevance
Domestic manufacturing ties into the goals of Atmanirbhar Bharat (self‑reliant India) and the transition to clean energy. It is also pertinent to UPSC topics on energy infrastructure, government policies and environmental conservation.
