Handpicked updates about India’s business and the business of India
Good morning! If you find yourself in Gauri Khan’s Asian restaurant Torii in Mumbai and you happen to have a small fly, insect, or hair in your food - don’t freak out, it’s part of the experience - as per co-founder Abhayraj Kohli. It’s refreshing, really. Most restaurants may say sorry and try to offer a dish without the unwanted guests but we’re being pushed to think of this as fine dining meets fear factor.
Now, let’s get into the Dispatch! 🚀
Today’s reading time is 7 mins.
Markets 🔔🐂🐻
As of the Indian market close on Aug 22nd
The Indian stock market indices ended lower on Friday, halting a six-day winning run. The downturn was caused by the new US tariffs on Indian goods, investors’ growing caution ahead of a key Fed speech, and profit-taking.
Energy & Environment
India’s $7 Trillion Solar Dream
Image Credits: Mint
Global Momentum in Solar: The solar energy industry has been on a scorching growth trajectory, powered by climate concerns, government push, and sharp cost declines. Despite policymakers in some major economies pulling back subsidies and support, the momentum hasn’t slowed. Goldman Sachs Research projects global solar installations to hit 914 gigawatts (GW) by 2030, about 57% higher than 2024 levels. The market itself is expected to balloon to USD 436 billion by 2032, with Asia Pacific leading the charge. North America too remains a significant contributor, especially as the US seeks to decarbonize aggressively.
India’s Big Bet on Sunshine: For India, solar energy is not just a sustainability play, it’s a growth engine. According to Mordor Intelligence, the Indian solar market is expected to grow at a CAGR of nearly 20%, reaching a capacity of 195 GW in the next five years. Longer term, BloombergNEF predicts India could emerge as the second-largest solar market after China by the mid-2030s, riding on massive domestic demand and a potential export boom. This growth is tied to a much larger prize: a share of the $7 trillion global solar investment expected through 2050. India hopes to capture a big slice, leveraging its vast land, abundant sunlight, and policy support for clean energy. Already, renewables are gathering speed, the country added a record 22 GW of renewable capacity in the first half of 2025, up 56% from a year earlier. The government has set a bold target of 500 GW of clean energy by 2030.
Two Big Roadblocks, US and China: But India’s path to solar glory is not without storm clouds. The first comes from Washington. The US, one of the most lucrative export markets for Indian solar products, is expected to slap tariffs as high as 64% on imports. If enforced, this could make Indian panels uncompetitive just as they were beginning to gain ground. The second roadblock lies closer to home: China’s dominance in the solar supply chain. India may produce modules, but it still depends heavily on China for critical inputs like specialized glass, silicon wafers, encapsulant films, and aluminum frames. In 2024, four of India’s top manufacturers sourced more than 97% of their solar glass and frames from Chinese suppliers. That dependence leaves India vulnerable to supply shocks and cost pressures.
India’s Response: New Delhi is acutely aware of this bottleneck. Since 2022, it has imposed 40% duties on solar modules and 25% on solar cells, while mandating developers to use modules only from government-approved suppliers. The results are starting to show—India’s module manufacturing capacity has surged 12-fold since 2021, while solar cell output has more than doubled in the past year. A bigger push is coming in June 2026, when the government will require developers to buy cells only from approved domestic suppliers. But for that deadline to stick, local producers will need to ramp up quickly and bring costs down to stay competitive with Chinese imports.
The Road Ahead: If India succeeds in localizing its supply chain, the payoff could be massive - $4.8 trillion in solar investment under moderate economic scenarios, and up to $6.9 trillion if global decarbonization accelerates. Beyond investment, the sector already employs more than 300,000 people, and cheaper renewable electricity could be the hidden dividend for households and industries alike.