India's solar production capacity is slated for swift growth, with local module and cell capacities projected to hit 200 GW and 100 GW, respectively, by FY28, greatly exceeding the annual domestic module demand of 50 GW in the next three years, as per CareEdge Ratings. As of July 2025, India had set up 118 GW of module capacity and 27 GW of cell capacity, but the actual operational levels were at 80-85 GW for modules and 11-13 GW for cells as a result of stabilization phases. Present production is estimated at 50-60 GWp for modules and 8-10 GWp for cells, resulting in an import dependency of 40-45 GWp for cells. This growth has been driven by increasing solar installations, proactive government initiatives, and better access to funding options. CareEdge observed that the domestic cell capacity is expected to achieve 100 GWp by FY28, backed by more than Rs. 55,000 crore (US$ 6.2 billion) in capital investment and increasing backward integration. This change may lead to a growing focus on module production for exports, while cell output could exceed domestic demand in the medium term. Although independent module manufacturers might encounter consolidation challenges, integrated companies are anticipated to gain from cost savings. Export outlook stays robust despite stricter US regulations, with chances arising from America's initiatives to diversify supply chains beyond China. Modules that comply with the US Domestic Content Requirement (DCR) achieve profit margins two to three times greater than those from domestic sales. Recent reductions in Goods and Services Tax (GST) rates are anticipated to lower solar project expenses by 4-5%, while tariff conditions continue to be influenced by compulsory domestic sourcing regulations outlined in the Approved List of Models and Manufacturers (ALMM-II).