The solar panels are already being manufactured in the country by both public and private sector enterprises. The installed domestic manufacturing capacity of solar modules is around 10 GW and that of solar cells is around 3 GW.

Domestic manufacturing of solar cells and modules is supported by Government of India by following initiatives:

  1. Domestic manufacturing of solar cells and panels in India is being supported by the Government of India through Modified Special Incentive Package Scheme (M-SIPS) of Ministry of Electronics & Information Technology.

  2. The solar power projects being implemented by the Central Public Sector Undertakings (CPSUs) with financial support from Government and those rooftop solar projects which are implemented with central financial assistance are mandated to source their requirement of solar cells & panels from domestic sources as per extant Guidelines, in a World Trade Organization (WTO) compliant manner.

  3. Ministry of New & Renewable Energy (MNRE) regarding "Implementation of Public Procurement (Preference to Make in India) Order for Renewable Energy sector" has stipulated that apart from civil construction, preference shall be provided in Central Ministries/Department and Central PSUs procurement to domestically manufactured/produced products such as solar PV modules and other components such as inverters, etc. for Grid connected solar power projects. Minimum Percentage of local content required is 100% in case of solar modules and 40% for other components such as inverter. etc.

  4. Ministry of Finance has imposed Safeguard duty on import of solar cells whether or not assembled in modules or panels.

As per the extant Consolidated FDI Policy Circular of 2017 provides that subject to the provisions of the FDI policy, foreign investment in "manufacturing" sector is under automatic route.

Further, a manufacturer is permitted to sell its products manufactured in India through wholesale and/or retail, including through e-commerce, without Government approval. The Government reviews the FDI policy on an ongoing basis and makes significant changes from time to time, to ensure that India remains attractive & investor friendly destination.