India's Solar Surge: 57x Growth, But US Duties Sting

India's solar power capacity has witnessed remarkable expansion, reaching 162.15 GW as of June 30, 2026, a nearly 57-fold increase from 2.82 GW in 2013-14. This surge has established India as the world's third-largest solar market. Domestic manufacturing has also scaled up significantly, with solar module capacity reaching 42 GW by June 2026.

However, this growth story is tempered by recent market events. Preliminary countervailing and anti-dumping duties imposed by the US Commerce Department in February and April 2026, respectively, on solar imports from India led to a sharp sector-wide sell-off. This impacted revenue streams for Indian manufacturers with substantial US exports.

Despite valuation corrections, leading companies are pushing forward with ambitious expansion plans. Vikram Solar, a manufacturer and EPC provider, is expanding module capacity to 15.5 GW and developing significant cell, wafer, and ingot manufacturing, alongside battery storage. Insolation Energy is moving into TOPCon cell and wafer manufacturing, supported by its existing module capacity and a growing power portfolio.

Waaree Energies, already a major module manufacturer, is further expanding its module and cell capacity, and venturing into ingot, wafer, battery, glass, and green hydrogen equipment production. These companies aim to enhance backward integration and reduce supply chain dependencies.

The expansion drive for these companies involves substantial capital investment and carries inherent risks. Timely project execution, healthy plant utilization, managing debt, volatile raw material costs, and evolving global trade policies are critical factors that will determine their ability to translate expansion into sustainable returns.