Nanowire solar cells hold several advantages over planar solar cells, such as reduced reflection, facile strain relaxation, extreme light trapping, increased defect tolerance, etc. However, because of their large surface-to-volume ratio, nanowires tend to have very low effective minority carrier lifetime. To overcome this issue, a radial junction solar cell was proposed. However, in experimental realization, the efficiency of a radial junction solar cell remains significantly lower than its axial counterpart. This is mainly because of the inability to simultaneously control the doping in both the core and the shell while maintaining low defect density at the interface. To overcome the above-mentioned issues, we propose and simulate a core–shell heterojunction solar cell using p-InP as a core material and ITO/ZnO as a shell material. Using finite-difference time-domain simulations, we show that use of an oxide coating over InP core can significantly increase the absorption in InP nanowire arrays, and for an optimized thickness of oxide layer, InP consumption can be reduced by as much as four folds without sacrificing the ideal short circuit current. In addition, our device simulation results show that even for a core minority carrier lifetime of 50 ps, an efficiency of 23% can be obtained if both core and shell can be heavily doped while maintaining an interface recombination velocity of less than 104 cm/s. Finally, we discuss how the proposed device structure can reduce the fabrication complexities related to epitaxial homojunction/heterojunction core–shell solar cell structure while achieving a high efficiency under optimized conditions.