India's solar industry is seeing a rapid increase in manufacturing capacity, with installations growing significantly in 2025. However, manufacturing growth outpaces installation, leading to an oversupply and weaker pricing for smaller manufacturers, while larger companies maintain high capacity utilization. Policy continues to support domestic production, with new rules for government-backed projects from June 2026. Solar module manufacturing capacity increased by 44.2 GW in the first half of 2025, bringing the total to 187.4 GW. The rapid increase in manufacturing is outpacing the rate of installation, creating an oversupply and downward pressure on module prices.

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