Over 125GW! This country's photovoltaic industry will be surplus!

According to Wood Mackenzie's latest report, India's solar module production capacity is expected to exceed 125 GW by 2025. This is more than three times the demand of about 40 GW in its home market; while this growth is expected to lead to an increase of 29 GW in Indian solar module inventories by the third quarter of 2025.

The report shows that the surge in production capacity is mainly due to the strong policy support of the government, including the Production Linkage Incentive Scheme (PLI) . But at the same time, the report mentions that the core challenge facing the industry is to match supply with domestic and foreign demand, which is exacerbated by the sharp decline in its main export markets.

It is reported that the United States imposed a 50% reciprocal tariff on India, which seriously impacted the export of Indian solar modules to the United States. Data show that India's exports of components to the United States fell 52% in the first half of 2025 compared with the same period in 2024, which led many Indian manufacturers to suspend plans for U.S. factories and focus on the domestic market.

report shows that, The cost per watt of Indian-assembled components using imported batteries is at least 0 higher than that of fully imported Chinese components . According to the new requirements, the cost of fully "Made in India" components will be more than twice that of Chinese-made components. The component is not competitive.

In response, India is deploying strong protective measures, including the Model and Manufacturer Approval List and the proposed 30% anti-dumping duty on Chinese batteries and components , to support a smooth transition for domestic manufacturers.

In addition, Hrishko said, "To achieve cost competitiveness, we need to shift to active research and development, invest in next-generation technologies, and strive to open up new export markets in Africa, Latin America and Europe .".