IEEFA analysts want India to build out domestic manufacturing capacity in green hydrogen and solar components, alongside electric vehicles, batteries and electrolysers, and say a strong green industrial policy is the way to get there.
The track record is split. Under the Production-Linked Incentive (PLI), solar cell and module output climbed quickly, according to IEEFA. Batteries and electrolysers stalled, with the analysts pointing to thin supply chains, missing skills, and failures of coordination between the parties involved.
IEEFA also argues that India can skip the subsidy race, saying its policy does not have to be sized against the clean technology support programmes run by China, the European Union (EU), and, until recently, the US.
IEEFA recommends structural measures rather than larger subsidies. First among them: specialised green manufacturing parks, developed jointly with private companies and brought forward faster than current planning allows.
Two domestic capability gaps get separate treatment in the same recommendation set. IEEFA calls for spending on specialised technical skills, and for quality-assurance and certification infrastructure that buyers will trust.
The fourth recommendation turns India's market size into a negotiating asset. IEEFA says India should require enforceable, milestone-based technology transfer inside joint ventures as the price of access to its domestic demand.