In this episode of Green Shift, businessline’s Consulting Editor M Ramesh examines ALMM Phase 2, the Government of India’s latest push to strengthen solar manufacturing and accelerate the country’s journey towards solar self-reliance.

The Government of India aims to build a complete domestic solar manufacturing ecosystem through the Approved List of Models and Manufacturers (ALMM), which requires government-supported solar projects to use approved, locally manufactured solar products. The objective is to create jobs, add value to the economy and reduce dependence on imported solar equipment.

But these benefits come with an economic trade-off. By giving up the opportunity to import cheaper Chinese solar products and mandating the use of domestically manufactured alternatives, India is paying a price. Estimates suggest that the opportunity cost could amount to around ₹30,000 crore this year, with the cumulative cost potentially running into several lakhs of crores over time.

The episode explores how ALMM works, the complete solar manufacturing value chain, China’s pricing advantage, economies of scale, employment generation, geopolitical considerations, and whether India’s pursuit of solar self-reliance is worth the cost.

Is the economic cost of solar self-reliance justified by the long-term benefits of domestic manufacturing? Watch this detailed analysis to understand the opportunities, trade-offs and future of India’s solar manufacturing strategy.

Published on July 10, 2026