"Make in India" Turns 10: A Decade of Transforming India into a Global Manufacturing Hub for Renewable Energy

The government has introduced a comprehensive range of financial, fiscal, and policy measures to promote domestic manufacturing in renewable energy.

As the "Make in India" initiative marks its 10th anniversary, it stands as a driving force behind transforming India into a hub for manufacturing, innovation, and world-class infrastructure. Launched by the Government of India, the initiative has been pivotal in attracting investment and fostering growth across various sectors, particularly renewable energy. With its focus on supporting domestic manufacturing, "Make in India" has positioned India as a key global player in renewable energy equipment manufacturing.

Union Minister for New and Renewable Energy, Shri Pralhad Joshi, highlighted the success of the initiative on X, stating, "India's renewable energy sector has contributed immensely to the #10YearsOfMakeInIndia. From PLI to VGF, we are extending all possible support to our domestic industries. We are committed to establishing India as a major global player in the complete value chain of clean energy solutions."

Boosting Domestic Manufacturing in Renewable Energy

The government has introduced a comprehensive range of financial, fiscal, and policy measures to promote domestic manufacturing in renewable energy. This includes the production of solar PV modules, cells, wind turbines, green hydrogen electrolysers, and battery energy storage systems. Key initiatives include:

Production Linked Incentive (PLI) Scheme: Financial incentives for setting up fully or partially integrated solar PV module manufacturing units, and support for other renewable energy components like wind turbines and electrolysers.

Viability Gap Funding (VGF): Support for large-scale Battery Energy Storage Systems projects and green hydrogen production under the National Green Hydrogen Mission.

Customs and Fiscal Benefits: Concessional duties on imports of key materials for manufacturing solar PV cells, waivers on import duties for capital goods used in renewable energy production, and basic customs duties on imports of solar PV modules and inverters to encourage local production.

Policy Support: Provisions like the Domestic Content Requirement (DCR) in schemes such as PM Surya Ghar: Muft Bijli Yojana and PM-KUSUM. Other policies include linking PLI amounts to local value addition, quality control orders for solar equipment, and approved manufacturer lists for solar and wind technologies.

Focus on Solar PV Manufacturing

Solar PV manufacturing has been a centerpiece of India's renewable energy strategy. The Government’s commitment to making India self-reliant (Atmanirbhar) in solar PV manufacturing has been reflected through substantial investments, such as the Rs. 24,000 crores allocated for the PLI Scheme for High-Efficiency Solar PV Modules. Since 2014, India's solar PV module manufacturing capacity has surged from 2.3 GW to approximately 67 GW, with a rapid increase in production capacity in recent years.

The solar PLI scheme has spurred the development of over 48 GW of solar PV manufacturing projects, attracting an estimated Rs. 1.1 lakh crores in investments. These projects are expected to create 45,000 direct jobs and bring advanced manufacturing technology to India. The country aims to achieve a solar PV module production capacity of 100 GW per year by 2026, meeting both domestic demand and generating significant export revenue.

Strategic Initiatives and Employment Opportunities

The government’s focus on renewable energy extends beyond solar PV. Key initiatives include manufacturing wind turbines and battery energy storage systems, crucial for utility-scale applications. The solar PLI scheme is also expected to reduce India's dependency on imports by bringing advanced technology to domestic manufacturers.

The renewable energy manufacturing sector is poised to not only meet India's growing energy needs but also emerge as a global leader in clean energy solutions. With strategic investments, policy support, and a growing manufacturing base, the "Make in India" initiative is well on track to position India as a significant player in the global renewable energy market, ensuring economic growth and sustainability for years to come.