Why India Must Lead Renewable Manufacturing

India's ambitious renewable energy path requires a critical shift from relying on imported clean energy technologies to building strong domestic manufacturing. Devansh Jain, Executive Director of INOXGFL Group, highlighted that India's energy transition is key not just for environmental goals but also for long-term economic resilience, energy independence, and manufacturing leadership amid escalating global uncertainty and supply chain issues. Control over global clean energy supply chains is now a measure of future economic power.

Foreign Investment: The Engine for Scale

The planned expansion requires a significant increase in foreign direct investment (FDI). Over the past 25 years, India has attracted about $23 billion in the renewable energy sector, a figure Jain believes must rise substantially to meet future needs. This capital is crucial to build domestic production for solar modules, cells, wind turbines, energy storage, green hydrogen gear, and power electronics. While renewable growth has helped manage foreign exchange, true energy independence requires manufacturing self-sufficiency at every production stage.

From Viability to Rapid, Large-Scale Growth

India has successfully shown that renewable energy is viable, evolving it from an alternative source to essential power infrastructure. The country is the world's fastest-growing renewable energy market, supported by stable policies and institutional backing. However, the next phase of growth needs a strategic focus on rapid, large-scale execution and developing self-reliance simultaneously. The first phase proved feasibility; the next must focus on achieving scale rapidly. India aims for 500 GW of non-fossil fuel capacity by 2030, possibly increasing to 750 GW. Achieving these targets requires faster progress in generation, transmission, storage, financing, and manufacturing.

Three Pillars for Sector Advancement

Jain identified three key priorities for the sector's progress. First, faster project approvals via coordinated land acquisition, transmission links, and environmental permits. Second, upgrading the grid with storage and balancing systems as renewables grow. Third, keeping costs down while ensuring long-term policy stability for developers and manufacturers is key. Stable policies are essential for lowering financing costs and maintaining investor confidence.

Navigating Risks on the Path to Leadership

Despite a positive outlook, significant risks could hinder India's transition to a clean energy manufacturing powerhouse. A major concern is achieving manufacturing scale and speed comparable to global leaders, especially China, which dominates segments like solar PV and battery production. While India pushes for domestic output, reliance on imported raw materials and components can still expose the sector to supply chain disruptions and price swings. Policy instability could deter needed FDI, raising financing costs and lowering investor confidence. Technological obsolescence is another risk, demanding constant R&D investment. Scaling up management, regulatory approvals, and grid integration pose significant operational challenges. Building a skilled workforce fast enough for mass manufacturing is also critical.

India's Ambition: A Global Clean Energy Hub

India has a major opportunity to go beyond being a leading renewable energy market and become a global center for clean energy manufacturing and technology. The next decade will shape the global energy order, and a strategic focus on domestic capabilities and attracting capital could empower India to define this future.