India’s solar (photovoltaic or PV) module exports have seen robust growth in the recent past. India’s PV module exports worth approximately $83 million in fiscal 2021-22 rose to $1.97 billion in fiscal 2023-24, said Minister of State for New and Renewable Energy Shripad Yesso Naik.
Export between November 2024 and April alone stood at around $782 million, Naik informed parliament. The biggest market for Indian PV modules was the US, whose contribution to US imports of PV modules went up from 2.2% in 2021 to 9% in 2023.
Drivers of Export Growth
A mix of factors such as higher domestic capacity, government support for the industry, and rising global demand for renewable energy fuels the sudden spurt in India’s PV module exports. The US, motivated by the Chinese import ban imposed by India in the form of trade restriction, has also targeted India as a source for supplying solar modules. This has opened up new channels for Indian participants to obtain increased market penetration and share.
India’s Position in the Global Market
While China leads the world in PV module exports, Vietnam, Thailand, Malaysia, and Cambodia collectively account for over 75% of US solar imports. India’s exports to America were $1.94 billion for FY 2023-24 and $756.08 million for Apr-Nov 2024, Naik said, citing a report by the Institute for Energy Economics and Financial Analysis and JMK Research. The boom in exports is an indicator of India’s growing position on the global stage in the solar industry and with mature companies in terms of competitiveness.
Government policies, including the production-linked incentive (PLI) scheme, domestic content requirement, incentives for buying domestically manufactured modules, and import duty on PV cells and modules, have been launched to strengthen local manufacturers and make them competitive with other export countries. These are aimed at checking import reliance and attaining solar self-reliance.
Solar Cell Exports and Future Outlook
Apart from solar PV modules, India has also shipped solar cells worth $54.67 million during the fiscal year 2023-24 and $27.32 million for April-November 2024. Solar cells were shipped to the US market at a value of $32.77 million during fiscal year 2023-24 and $25.09 million for April-November 2024.
It is a consistent rise in Indian solar manufacturing capacity, with Indian manufacturers remaining back in overseas markets.
With increasing global demand for solar energy, India’s solar manufacturing sector will be able to benefit from a positive market.
With favorable policies, judicious investments, and technological advancements, Indian exports of PV modules will increase in the coming years. With utilization of world trends and increased local production, India can become a giant in the international solar industry.
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