India attracted more than $3 billion in investment in clean-technology manufacturing during 2025, according to data from the International Renewable Energy Agency (IRENA) cited by Business Standard. The progress was particularly notable in the solar photovoltaic industry: the country’s share of global investment in the sector rose from 1 percent in 2023 to 20 percent in 2025.
India’s capacity to manufacture solar equipment also increased from 5 to 125 gigawatts over the past six years. This growth coincided with a decline in solar investment during 2025 in other markets, including China, the United States and several Southeast Asian economies, according to information attributed to IRENA.
Supply-chain diversification
China continues to account for most of the world’s clean-technology manufacturing and assembly capacity. At the end of 2025, it held 89 percent of solar capacity, 88 percent of battery-related capacity, 76 percent of wind capacity and 66 percent of hydrogen electrolyzer capacity. However, the share of renewable-energy manufacturing investment directed to countries other than China rose from 15 percent to 23 percent over two years, with India, the United States and Europe among the leading destinations.
IRENA links India’s progress to several public-policy instruments, including the production-linked incentive program, known as PLI; the Approved List of Models and Manufacturers, or ALMM; and renewable consumption obligations. Business representatives consulted by the newspaper also cite the size of the domestic market and the international search for alternative suppliers as contributing factors. These assessments reflect the industry’s view and do not in themselves mean that all announced projects have already been completed.
Gaps in batteries and components
Progress has not been uniform across the value chain. India still lags in battery manufacturing and in upstream solar segments, such as wafers, ingots and certain industrial equipment. Although global battery investment outside China rose from 18 percent in 2024 to 23 percent in 2025, driven by India, Europe and other Asian regions, the source says the country still needs to build capacity in this area.
The Indian Solar Manufacturers Association puts announced and planned investment in the domestic photovoltaic supply chain at about 1 trillion rupees. These are therefore corporate plans rather than capital already disbursed. The experts cited believe that policy continuity, access to financing, competitive energy costs and strengthening the power grid will be critical to consolidating the growth of local manufacturing.
