India Pushes to Indigenise 100 Industrial Products Amid China's Export Restrictions

India has intensified its efforts to strengthen domestic manufacturing by identifying 100 intermediate and capital goods for indigenisation across multiple sectors, amid China's proposed export restrictions on key industrial products and technologies.

The Department for Promotion of Industry and Internal Trade (DPIIT) has initiated discussions with various ministries to identify measures to increase domestic production of these products, according to a senior government official.

The move comes as China prepares to introduce an export licensing mechanism from November 18 for capital goods used in strategic sectors, including solar equipment and heavy machinery. The restrictions are also expected to cover tunnel boring machines, which are essential for major infrastructure and underground construction projects.

In response, India has started preparations to manufacture tunnel boring machines domestically. A manufacturing plant has been established in Tamil Nadu, with production expected to begin shortly.

The government is also advancing plans to indigenise selected petrochemical products, particularly in view of supply-chain vulnerabilities highlighted by the West Asian crisis.

China's proposed restrictions on solar manufacturing technologies have further accelerated India's efforts to reduce dependence on imports. The government is planning to expand domestic solar manufacturing capacity and has begun preparing guidelines for recycling solar module waste. The Ministry of New and Renewable Energy has also conducted consultations with industry stakeholders on module recycling.

Gaps in India's Solar Manufacturing Supply Chain

India has an estimated annual solar module manufacturing capacity of around 233 gigawatts (GW), while its solar cell manufacturing capacity stands at approximately 30 GW. This imbalance has resulted in continued dependence on imported solar cells, particularly as the country adds nearly 50 GW of solar power capacity annually.

The dependence is more pronounced in the upstream segments of the manufacturing chain. India's installed capacity for producing solar ingots and wafers is estimated at only around 2 GW, leaving a substantial portion of domestic requirements dependent on imports.

The solar manufacturing process begins with polysilicon, which is converted into ingots and subsequently sliced into wafers. These wafers are used to manufacture solar cells, which are finally assembled into solar modules.

The government's indigenisation push aims to address these manufacturing gaps, strengthen supply-chain resilience and reduce India's dependence on foreign suppliers for critical industrial components.