India weighs new capital subsidies to build domestic polysilicon capacity

India's proposed capital subsidy for domestic polysilicon production will reshape the global solar supply chain. Upstream, this move accelerates silicon feedstock purification and downstream particle silicon innovation, reducing module costs but causing short-term price volatility due to capacity ramp-up. Compliance-wise, while local firms gain operational advantages, trade tensions may emerge with key exporting regions such as Taiwan, China, and Hong Kong, China. In market dynamics, leading players may accelerate overseas expansion to mitigate policy risks, while new entrants could leverage subsidy windows for rapid scaling. Over the next 12–24 months, global polysilicon supply will undergo structural shifts, particularly in capacity distribution and pricing mechanisms, indirectly influencing semiconductor material chains.