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India’s cleantech manufacturing ambition cannot be realized through sector-specific interventions alone. While demand across solar, wind, batteries, e-mobility, green hydrogen, and high-voltage transmission is scaling rapidly, domestic value addition today remains limited at roughly 20–55% across these value chains. As a result, India’s cleantech import bill, estimated at approximately USD 18 billion in 2024–25, could rise to USD 65–97 billion annually by 2030 without deeper indigenization.
As part of the Bharat Climate Forum, Dalberg undertook a set of cross-sectoral analyses that cut across six priority cleantech value chains to identify the systemic reforms required to enable around 50% domestic value addition by 2030. This analysis complements the sectoral deep dives by focusing on the horizontal enablers: demand and market architecture; research, development, and product innovation; upstream raw materials and critical inputs; capital equipment and infrastructure; talent and workforce; and financing and taxation, which determine the pathways to indigenize cleantech manufacturing in India.
This work is grounded in extensive data analysis, stakeholder consultations, and collaboration with leading knowledge partners including CEEW (green hydrogen), MEC+ (wind), and Trilegal (financing and taxation), who supported the analytical development and validation of the pathways.
In case you have any questions, please get in touch with Vismit Bansal.
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PATHWAY 1 Demand and Market Architecture: Signaling Long-Term Growth
Dalberg’s demand scenarios built for each of the six priority cleantech sectors are based on current policy commitments, procurement pipelines, and alternative market design choices. Demand aggregation, phased domestic value addition mandates, and long-term policy certainty can create durable offtake signals, reduce investment risk, and enable the scale-up of domestic manufacturing capacity.
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PATHWAY 2 Research, Development, and Product Innovation: Building a World-Class Ecosystem for Technology Leadership
The analysis identifies a dual pathway for technology development across sectors. Near-term manufacturing scale-up can be enabled through technology transfer and joint ventures for mature technologies, while sustained competitiveness will require indigenous development of next-generation solar, battery, hydrogen, and grid technologies.
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PATHWAY 3 Upstream Raw Materials and Critical Inputs: Path to Building Supply-chain Security
Strengthening raw material security requires a combination of diversified international sourcing partnerships, development of domestic refining and processing capacity for critical inputs, and early investment in circularity through recycling, recovery, and material substitution. Strategic stockpiling and early development of recycling ecosystems can further reduce exposure as domestic manufacturing expands.
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PATHWAY 4 Capital Equipment and Infrastructure: Building the Foundations for Scale
Across sectors, dependence on imported capital equipment, often ranging from 40% to over 90%, raises costs and extends project timelines. Targeted support is required for domestic capital equipment manufacturing, facilitation of technology partnerships with global original equipment manufacturers (OEMs) and development of shared industrial infrastructure and plug-and-play manufacturing clusters that lower entry barriers for new manufacturers.
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PATHWAY 5 Talent and Workforce Development: Preparing the Pipeline for 1.8 Million Cleantech Manufacturing Jobs
Current skilling systems are not yet aligned with the specialized needs of cleantech manufacturing, underscoring the need to upgrade ITIs and polytechnics near manufacturing clusters, modernize engineering curricula, expand industry-linked apprenticeships, and create structured pathways for high and ultra-skilled technical talent tied directly to emerging manufacturing technologies.
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PATHWAY 6 Financing and Taxation: Mobilizing Capital India’s Cleantech Manufacturing Ambition
Public capital has the potential to unlock INR 4.5–7 lakh crore (about 50–78 billion USD) in private investment, provided risks are reduced through instruments such as partial credit guarantees, interest subvention, upfront capex support, and rationalized tax and duty structures. Time-bound incentives with clear sunset clauses can help crowd in private capital while maintaining fiscal discipline.
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