In order to support gigawatt-scale photovoltaic module production, the Indian authorities announced additional funding of US$3.2 billion for the photovoltaic manufacturing incentive program.

In order to get rid of the dependence on foreign photovoltaic manufacturing capacity, India encourages local and global companies in India to establish large-scale photovoltaic manufacturing plants in India, and provides relevant incentives.

In April 2021, the United Cabinet of India approved the proposal of the Ministry of New Energy and Renewable Energy (MNRE) on the implementation of the production-linked incentive (PLI) plan of the “National Plan for High-Efficiency Solar Photovoltaic (Photovoltaic) Modules” to achieve 45 billion euros ( About 605 million U.S. dollars) gigawatt-scale manufacturing.

Solar photovoltaic manufacturers will choose through a transparent and competitive bidding process. This award will be issued within five years after the solar photovoltaic manufacturing plant is put into production.

India's current domestic production capacity of photovoltaic cells is about 2.5GW, and the production capacity of modules is about 9-10GW. The previous bid for the incentive plan attracted bids for the production capacity of 54.5GW of solar equipment.

Now that India has increased its budget, bidders who failed to win the project under the production-related photovoltaic manufacturing incentive plan still have the opportunity to obtain funding.

India has set a goal of reaching 100 GW of installed photovoltaic capacity by 2022 and 450 GW of renewable energy generation capacity by 2030, with photovoltaics accounting for nearly 300 GW of total installed capacity.