China, the world’s clean-energy juggernaut, faces a rival right next door. And one of its top customers, no less.

India, a big buyer of Chinese solar panels and electric vehicle batteries, is using a raft of government incentives to make more green gear at home. It is driven not just by the need to satisfy the galloping energy demands of its 1.4 billion people, but also to cash in on other countries that want to China-proof their energy supply chains, not least the United States.

India remains a tiny and tardy entrant. Last year it produced around 80 gigawatts of solar modules, while China produced more than 10 times that. India is still tied to coal, the dirtiest fossil fuel: Coal is its largest source of electricity, and India plans to mine for more of it.

But India is aggressively trying to take advantage of a global energy transition and a backlash against Chinese dominance of new energy technologies.

Hoping to spur a clean energy manufacturing boom, the government is offering lucrative subsidies for locally produced solar cells and batteries, and it is restricting foreign products in its biggest renewable-energy projects. To cash in on government contracts to install rooftop solar for 27 million households by the end of this decade, for instance, companies must make the panels at home.

For New Delhi, there are social, economic and geopolitical imperatives. China is its most formidable rival — the two countries have in the past gone to war over border disputes — so India’s quest to build solar, wind and electric vehicle factories is partly designed to secure its energy supply chain. At the same time India wants to create good-paying manufacturing jobs.