India’s solar module and cell exports decline by 16% to $1.5 billion in the calendar year 2024 from $1.8 billion in 2023, as per data from Mercom. The decline in shipments can be attributed to heightened shipment scrutiny, including port inspection and barcode verification of individual modules, and concerns over potential Chinese component inclusion, Mercom said.
Among solar exports, exports of photovoltaic modules dominated accounting for 97.7% of the total shipments, while solar cells accounted for the remaining 2.3%.
In 2024, the US emerged as the top destination for the country’s solar cells and modules accounting for as much as 97.5% of the total shipments.
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Similarly, imports of solar cells and modules also registered a decline last year with imports reaching $4.5 billion, down 10.2% from $5 billion in 2023.
Solar modules accounted for 65.1% of the total solar imports, while solar cells accounted for the remaining 34.9%.
The reimposition of the Approved List of Models and Manufacturers order significantly reduced the country’s solar module imports. Additionally, government schemes like PM Suryaghar Muft Bijlee Yojana and Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM-KUSUM) mandating use of modules conforming with domestic content requirements impacted the imports of solar modules in 2024.
China remained the top supplier of solar products to the country accounting for 86.5% of the total imports. Vietnam was the second largest supplier with 7.9% of imports, followed by Thailand at 3.2%. Other suppliers included Indonesia, Singapore and the US with 1%, 0.7%, and 0.3% of imports respectively.
Going ahead, the US threat of reciprocal tariffs could lead to market disruptions impacting the country’s solar exports, industry experts say.
“Given that India imposes 40% customs duty on module imports, any reciprocal imposition of tariffs on module exports from India would adversely impact the export prospects for the Indian Original Equipment Manufacturers,” Vikram V, Vice President & Co-Group Head, Corporate Ratings, ICRA Limited had said.
Rishabh Jain, Senior Programme Lead, Council on Energy, Environment and Water warned that in the absence of the US market, Indian manufacturers could struggle to find an alternative market, and there could be repercussions, including consolidation in the sector.
“For now, India should focus on prioritising components where either high levels of competitiveness exist or can be developed.
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