India now ranks third globally in installed renewable energy capacity. A new report by Morgan Stanley says India’s renewable energy transition will help reduce external dependence, but its success will depend on how quickly the country localises critical segments such as solar cells, wafers, and polysilicon.
According to data from the Ministry of New and Renewable Energy, domestic solar module capacity has nearly doubled, from 38 gigawatts in March 2024 to 74 gigawatts in March 2025. Solar cell capacity has also increased from 9 gigawatts to 25 gigawatts.
However, the report notes that India still relies heavily on imports for key upstream components. In the financial year 2025, India imported around 35 million solar modules worth about 1.6 billion US dollars, with an estimated 60 to 80 per cent sourced from China.
Overall, non-fossil fuel capacity in India has now crossed 50 per cent of total installed capacity, reaching 262.7 gigawatts. Solar and wind energy account for the bulk of recent additions.