The parks will be developed through joint ventures involving state governments and a state-run company, Vaishnaw told reporters after the cabinet meeting.

Industry Secretary Amardeep Singh Bhatia said the government expects to develop about 33,000 acres of land for manufacturing over a period of six years.

The planned industrial parks will range in size from 100 acres to 1,000 acres, equivalent to about 40.5 hectares to 404.7 hectares, he said. The government will provide financial support of up to 10 million rupees per acre for core and social infrastructure within the parks.

Officials said the initiative is aimed at creating integrated manufacturing zones with necessary facilities to support industrial activity.

The programme reflects India’s ongoing efforts to expand its manufacturing base through infrastructure development and coordination with state governments.

The use of joint ventures is expected to facilitate land acquisition and project implementation, while financial assistance is intended to reduce upfront costs for infrastructure development.

Separately, the cabinet approved 117 billion rupees for minimum support prices for cotton purchases, according to government officials.

The allocation is intended to support procurement operations under existing price support mechanisms.

The proposal would extend local sourcing requirements across the entire solar manufacturing chain, reinforcing earlier rules that already require the use of locally assembled solar panels in state-run projects.

Under current regulations, companies must use domestically produced solar panels, though key upstream components such as cells, wafers, ingots and polysilicon can still be imported. The new proposal seeks to close that gap by mandating local production of critical inputs.

India has already directed firms to use domestically manufactured solar cells starting June 2026, marking a phased approach toward building a fully integrated domestic supply chain.

Major energy firms including Waaree Energies, Tata Power and Indosol Solar have announced plans to invest billions of rupees to expand manufacturing capacity, aligning with policy signals favoring local production.

The push comes as India targets 500 gigawatts of non-fossil fuel-based power capacity by 2030, a goal that requires rapid scaling of solar installations alongside domestic industrial capability.

India currently depends heavily on China for imports of key solar components, including cells, wafers, ingots and polysilicon. The proposed mandate is expected to reduce that dependence while strengthening domestic manufacturing resilience.

The policy reflects a broader strategy to secure supply chains and support local industry as global competition in renewable energy technologies intensifies.