Wood Mackenzie, a Singapore-based global energy research and consulting firm, has reported that India’s solar module manufacturing capacity is expected to exceed 125 GW by 2025, that is more than triple the domestic demand of around 40 GW. The expansion has been driven by the government’s Production Linked Incentive (PLI) scheme, which has accelerated large-scale factory development across the solar value chain. However, Wood Mackenzie has warned that the sector now faces significant overcapacity risks amid a 52 % decline in exports to the United States following the introduction of new reciprocal tariffs. It said Indian-assembled modules remain about $0.03 per watt costlier than Chinese ones, even with protective measures such as the Approved List of Models and Manufacturers and proposed anti-dumping duties. The firm added that India’s long-term success depends on improving R&D, technology innovation, and export diversification into Africa, Latin America, and Europe.