India's solar cell manufacturing capacity is set for dramatic expansion as the country moves toward 100 GW by December 2027, according to industry reports. Currently, India has approximately 32 GW of enlisted domestic solar-cell capacity, with further capacity expected to be commissioned and enlisted during the year. This represents a threefold increase from current levels, addressing the current supply-demand mismatch that has emerged following the government's introduction of the approved list of models and manufacturers for solar cells (ALMM List-II).
Major solar manufacturers are making significant investments to expand their cell manufacturing capabilities. Avaada Group expects its cell-making capacity to reach 6 GW and plans to supply half-cut cells to domestic module makers. Vikram Solar is on track to commission 9 GW of domestic solar cell capacity by the end of FY27, as reported by industry leaders. The country's ALMM-listed module manufacturing capacity has also crossed around 217 GW, providing a substantial foundation for the cell manufacturing expansion.
According to Avaada Group's chairman Vineet Mittal, the current shortage represents a transitional phase as the market aligns with local content requirements. He emphasized that comparing India's more than 200 GW of module capacity with its cell capacity could give a misleading picture, as module factories do not always run at full capacity and many projects do not require locally made cells. The present issue stems from matching technology, specifications and procurement schedules, rather than indicating India's inability to develop adequate cell capacity.
Industry leaders emphasize the strategic importance of achieving self-reliance in solar manufacturing. Vikram Solar's Gyanesh Chaudhary noted that ALMM List-II has changed industry focus from simply assembling modules to making more components within the country, with backward integration being the key to long-term energy security. The policy framework is expected to encourage permanent capacity expansion, as manufacturing capacity adapts to certainty of demand and investors commit capital when they see credible markets for resulting products.
Analyst Avinash Gorakshakar from Avinash Mentor Research highlighted that the current problem cannot be judged simply by comparing module and cell manufacturing capacity, noting that not every module factory operates at full utilization and not every solar project falls under domestic-content or ALMM cell requirements. ICRA had estimated in November 2025 that India's solar cell manufacturing capacity could rise to around 100 GW by December 2027, with investments following ALMM List-II driving the increase. The research firm also expects India's module manufacturing capacity to cross 165 GW by March 2027.
