Key Details
The CII Renewable Energy Manufacturing White Paper 2025–26 examines six connected areas: wind manufacturing, institutional capacity, wind exports, repowering, solar manufacturing and solar balance-of-material components. It is an industry policy paper: the measures described below are CII recommendations, not government decisions.
Manufacturing Area | What the White Paper Identifies |
|---|---|
Wind components | Towers and blades are largely manufactured domestically, but gearboxes, bearings, generators, converters, castings and forgings remain substantially import-dependent. |
Unused capacity | India has around 20 GW of annual wind-turbine manufacturing capacity, with 20–55% of capacity across major components estimated to be underutilised. |
Wind repowering | Approximately 25.4 GW of older wind capacity could be replaced with larger, more efficient turbines at existing sites. |
Solar value chain | As of March 2026, India had more than 160 GW of module capacity, compared with 27 GW of cell capacity and only around 2 GW of polysilicon, ingot and wafer capacity. |
Ancillary components | Manufacturing capacity is increasing for solar glass, frames, encapsulants and junction boxes, but low-priced imports and duty structures constrain utilisation. |
Institutional capacity | The paper seeks a larger technical role for the National Institute of Wind Energy, supported by upgraded testing, certification and specialised skills. |
Manufacturing Capacity Does Not Yet Mean Supply-Chain Independence
India’s renewable manufacturing base has expanded fastest in final-stage production, while upstream materials and technologically complex components remain more import-dependent.
In wind manufacturing, towers and blades—around 45% of turbine cost—are largely sourced domestically. Dependence is concentrated in the nacelle and its components. In FY2024–25, imports met approximately:
60% of demand for gearboxes, castings and power electronics;
40% of generator demand;
90% of specialised-bearing requirements; and
all demand for large forgings.
Domestic wind components cost an estimated 20–30% more than Chinese products before duties and logistics, and can remain 10–15% more expensive even after these are included. CII attributes the gap to smaller scale, input costs, precision-manufacturing constraints and limited targeted finance.
The paper proposes about ₹2,650 crore of interventions for technology upgrades, testing, duty realignment, capital expenditure and working capital. It estimates these could narrow the cost gap by 15–18%, although these are industry projections.
Wind Manufacturing Needs Larger Markets
India installs around 4–5 GW of wind capacity annually, leaving parts of its manufacturing base underused against approximately 20 GW of annual turbine capacity.
CII identifies two routes to expand demand:
Exports: Global wind installations are projected to approach 160 GW annually by 2030. The paper proposes export-linked incentives, trade finance and government-supported project development overseas.
Repowering: India has around 25.4 GW of turbines below 2 MW, many in high-quality wind corridors. Replacing older turbines could increase generation from existing sites and make better use of transmission infrastructure.
Repowering remains constrained by fragmented ownership, grid limitations and differing State rules. CII proposes a National Repowering Mission, standardised State frameworks, grid upgrades and dedicated financing products.
Solar Capacity Is Concentrated at the Module Stage
India had more than 160 GW of annual module capacity in March 2026, compared with 27 GW of cell capacity and around 2 GW of polysilicon, ingot and wafer capacity. By June, the paper reports module capacity above 200 GW and cell capacity around 30 GW.
The imbalance means India can manufacture modules at scale while remaining dependent on imported cells and upstream inputs. China accounts for an estimated 90–93% of global polysilicon production, adding concentration risk.
CII proposes:
restoring the full five-year PLI window for affected manufacturers;
differentiated support for polysilicon, ingots, wafers and solar glass;
phased domestic-content requirements aligned with available capacity;
integrated manufacturing clusters; and
R&D support for TOPCon, heterojunction, perovskite and tandem technologies.
The proposed capital and electricity subsidies for upstream manufacturing would need to be weighed against fiscal cost, technology risk and long-term competitiveness.
Solar Components Remain a Missing Link
Beyond cells, modules require glass, aluminium frames, encapsulants, backsheets, junction boxes, sealants, cables and copper interconnects—the balance of materials (BoM).
Domestic capacity for several components is expected to exceed 50 GW by March 2027, but utilisation remains limited. CII points to low-priced imports, fragmented standards and inverted duty structures in which some raw materials face higher duties than finished imported components.
It proposes a dedicated BoM policy covering:
correction of inverted customs duties;
phased Quality Control Orders aligned with domestic supply;
India-specific standards and testing;
concessional, longer-term finance; and
domestic value-addition requirements in government-supported procurement.
Sequencing will matter: sourcing mandates or duties introduced before domestic supply is adequate could increase project costs and slow renewable deployment.
NIWE Would Take a Larger Technical Role
CII proposes expanding the National Institute of Wind Energy (NIWE) from resource assessment and certification into the principal technical reference institution for onshore, offshore, hybrid and repowering projects.
Its proposed role includes standards, technical advisories, prototype testing and coordination with regulators, grid institutions, manufacturers and researchers.
The paper also seeks domestic facilities for testing large blades, drivetrains, gearboxes, converters and complete nacelles. This could reduce dependence on overseas certification and allow equipment to be tested for Indian conditions, including heat, dust, humidity, coastal corrosion and high turbulence.
Policy Relevance
India’s challenge is no longer simply to announce more manufacturing capacity. The policy test is whether that capacity can produce competitive technology, secure critical inputs and operate at commercially viable utilisation rates.
Industrial policy and energy policy must remain aligned. Protection for domestic manufacturers should not make renewable projects unaffordable or delay installations.
Value addition matters more than final assembly. Monitoring should distinguish modules from cells, wafers and polysilicon—and complete turbines from their imported internal components.
Domestic demand needs greater predictability. Stable auction pipelines, transmission availability and timely project execution can improve factory utilisation without relying exclusively on subsidies.
Repowering could connect industrial and energy objectives. It can create demand for new turbines while raising generation from existing wind sites, provided states harmonise their rules.
Testing and technology capability require public investment. Manufacturing scale will have limited strategic value if advanced products continue to depend on foreign designs, intellectual property and certification.
Trade measures need periodic review. Support may be justified while capabilities develop, but it should be reassessed against costs, quality, utilisation and export performance.
Follow the Full White Paper Here: CII Renewable Energy Manufacturing White Paper 2025–26