India’s solar manufacturing capacity about to exceed 125 GW, raising overcapacity concerns
New Delhi: India’s solar module manufacturing capacity is set to surpass 125 GW by 2025, more than triple the domestic demand of around 40 GW, creating an inventory surplus of 29 GW, according to Wood Mackenzie.
The surge has been fueled by the government’s Production Linked Incentive (PLI) scheme, which has spurred rapid factory expansion.
However, the industry now faces overcapacity risks, compounded by a sharp decline in exports to the United States, where new 50% reciprocal tariffs caused module shipments to fall 52% in the first half of 2025.
