India’s next phase of energy transition will be defined not only by renewable energy capacity additions, but also by the development of a globally competitive clean energy ecosystem. Its rise in the World Economic Forum’s Energy Transition Index 2026, at a time when many countries witnessed a decline in transition readiness, stands as a testament to Prime Minister Narendra Modi’s steadfast commitment to advancing clean energy and climate action. This achievement reflects the success of India’s policy reforms and strategic investments under his leadership, which have strengthened the country’s performance across key pillars such as infrastructure, investment and financing, environmental sustainability, and energy equity.

PM Surya Ghar—Democratising the Energy Transition: PM Surya Ghar: Muft Bijli Yojana (PM-SGMBY), launched on 13 February 2024, is the world’s largest rooftop solar programme. By March 2025, 10 lakh homes had adopted rooftop solar, rising to 30 lakh installations by April 2026, including a record 2.7 lakh installations in that month alone. Benefiting over 45 lakh households, the scheme is expanding access to clean energy, lowering electricity bills, and enhancing energy security through distributed solar generation.

Energy Security Through Industrialisation: The strategic case is compelling. India imports nearly 80–85% of its fossil fuel requirements at an annual cost of $150–200 billion, exposing the economy to external shocks, inflationary pressures, and energy security risks. Building domestic clean energy capabilities is therefore not just a climate imperative—it is an economic and strategic necessity.

Scale, Cost and Manufacturing Momentum: The foundations are already taking shape. India added more than 37 GW of solar capacity in 2025 and has built over 90 GW of solar module manufacturing capacity. Solar tariffs have fallen from ₹10–12 per unit a decade ago to around ₹2–2.5 today, making renewable energy one of the most cost-competitive sources of power globally. This combination of scale and affordability can serve as a powerful engine for industrial growth.

Deepening the Value Chain: The next challenge is to move beyond module assembly and build capabilities across the entire clean energy value chain—from polysilicon, wafers, and ingots to cells, battery storage, green hydrogen, and advanced grid technologies. The objective is not merely import substitution, but the creation of resilient, globally competitive supply chains that reduce dependence on external markets.

Policy-Led Localisation: Policy interventions are beginning to accelerate this shift. According to Crisil, the Approved List of Cell Manufacturers (ALCM) mandate is expected to enable domestic solar cell production to meet nearly half of India’s annual demand this fiscal year, up from about one-fourth last year. With domestic cell manufacturing capacity projected to reach 60 GW, import dependence is set to decline significantly. The planned rollout of ALMM III from 2028 will further deepen localisation by extending requirements to wafers and ingots.

Building the Backbone: Manufacturing leadership must be matched by infrastructure readiness. Achieving 500 GW of non-fossil-fuel capacity by 2030 will require sustained investment in transmission networks, energy storage, and grid modernisation. As renewable energy penetration rises, grid flexibility and reliability will become just as important as generation capacity.

The global energy transition represents one of the defining industrial opportunities of this century. India may require nearly 3,000 GW of wind and solar capacity by 2047—six times its 2030 target. The countries that build the technologies, supply chains, and industrial capabilities powering this transition will shape the next era of economic growth. India is well positioned not only to participate in this transformation, but to lead it.