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Overcapacity in solar manufacturing to impact firms' profitability: ICRA

India's solar module capacity is set to reach 165 GW by March 2027, creating overcapacity that could pressure smaller players' margins, ICRA said in a new report

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The global solar PV manufacturing supply chain continues to be dominated by China, which holds over 90 per cent of the global manufacturing capacity across polysilicon and wafer segments, more than 85 per cent in cells, and about 80 per cent in modul

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2 min read Last Updated : Nov 06 2025 | 4:51 PM IST

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India's solar photovoltaic (PV) module manufacturing capacity is set to rise to over 165 gigawatts (GW) by March 2027 from around 109 GW at present, driven by strong policy support such as the approved list of models and manufacturers (ALMM), ratings agency ICRA said on Thursday.

What is driving India’s surge in solar manufacturing capacity?

The ALMM initiative has barred the direct import of modules, adding to the overcapacity alongside the imposition of basic customs duty on imported cells and modules and the production-linked incentive (PLI) scheme.

The implementation

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