India Plans Incentives for Polysilicon Production

India is preparing a new production-linked incentive (PLI) scheme to boost domestic polysilicon manufacturing, aiming to reduce its heavy reliance on imports from China. Polysilicon is a critical raw material used in solar photovoltaic panels, and the initiative is part of the country’s broader strategy to strengthen its clean energy supply chain.

The proposed scheme is expected to support more than 10 GW of polysilicon production capacity, although the financial details have not yet been disclosed. India has already invested ₹240 billion in incentives for solar panel and cell manufacturing and is working toward an integrated ecosystem covering modules, cells, wafers, ingots, and polysilicon.

The move aligns with India’s target of achieving 500 GW of non-fossil fuel power capacity by 2030. Officials say expanding domestic manufacturing will improve energy security, reduce import dependence, and enhance industrial competitiveness. Since polysilicon is also used in semiconductor manufacturing, the initiative could provide additional economic benefits beyond the solar sector.

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