Powering India's Energy Transition: The Case for Resilient Solar and Battery Value Chains

Abstract

Aims: To examine India's dependence on imported solar photovoltaic and battery value chains, assess the effectiveness of current industrial and trade policies in reducing this dependence, and identify policy measures required to strengthen resilient domestic manufacturing. Study Design: Qualitative policy paper based on a review and synthesis of recent literature, government policies, trade statistics, and industry reports. Place and Duration of Study: Indian Council for Research on International Economic Relations; June-July 2026 Methodology: The study reviews the solar photovoltaic and battery manufacturing value chains to examine the concentration of critical clean-energy technologies and India’s evolving import dependence. Sources were selected based on their relevance to India’s solar and battery supply chains, manufacturing capacity, trade dependence, and related policy interventions, with an emphasis on recent peer-reviewed literature, government publications, official trade data, and credible industry reports. The selected evidence was synthesised thematically across manufacturing, trade, industrial policy, and deployment to assess policy effectiveness, identify persistent upstream supply-chain gaps, and develop future policy priorities. Results: The analysis shows that recent policy interventions have encouraged domestic solar module assembly but have not substantially reduced dependence on imported upstream components, particularly solar cells and other critical manufacturing inputs. A similar pattern is emerging in Battery Energy Storage Systems (BESS), where domestic activity is concentrated in battery pack assembly while lithium-ion cell demand continues to increase. The findings indicate that deployment has progressed faster than the development of upstream manufacturing capabilities across both sectors. Conclusion: Achieving long-term energy security will require India to complement renewable energy deployment with stronger domestic manufacturing capabilities. Priority should be given to upstream manufacturing, strategic industrial policy, diversified technology partnerships, and resilient critical mineral supply chains to develop globally competitive solar and battery value chains.