New Delhi, May 11: India has emerged as the world’s third-largest country in installed renewable energy capacity, with the transition playing a key role in reducing external energy dependence, according to a Morgan Stanley report.
The report noted that renewable energy is central to India’s medium-term strategy for improving macroeconomic resilience. Non-fossil fuel capacity has crossed 262.7 GW, accounting for over 50 per cent of the total installed capacity, led by solar and wind power.
While domestic solar module manufacturing has expanded significantly—rising from 38 GW in March 2024 to 74 GW in March 2025—India remains dependent on imports for upstream components such as solar cells, wafers and polysilicon. In FY2025, the country imported solar modules worth around $1.6 billion, with a majority sourced from China.
The report emphasised that strengthening domestic manufacturing across the solar value chain will be crucial to reducing supply chain vulnerabilities and ensuring long-term energy security, even as renewable deployment continues to scale rapidly.
