India is becoming an important player in the global solar photovoltaic (PV) market, making use of its abundant sunlight and growing shift towards renewable energy. The country mainly exports two types of solar products: unassembled solar PV cells and fully assembled solar panels. Both segments have seen strong growth in recent years. However, India still depends heavily on imported components for solar cell manufacturing, which limits its ability to compete globally in this area.
To reduce this gap, the Indian government introduced the Approved List of Models and Manufacturers (ALMM) policy on April 1, 2024. This policy makes it mandatory to use only locally made solar panels in government-supported projects. The government also plans to include solar cells in this list by June 2026. As a result, local manufacturers are now expanding their production capacity. In March 2025, India exported solar modules worth ₹87,109 lakh, and total solar PV exports for Q1 2025 reached ₹2,31,942.53 lakh. Out of this, modules made up ₹2,28,905.1 lakh and cells ₹3,037.43 lakh. In March 2025 alone, India exported PV cells worth ₹104 lakh.
Globally, the solar market is going through major changes. Countries such as the U.S. and those in Europe are taking steps to reduce their dependence on Chinese solar products. The United States recently imposed higher import tariffs on solar modules and cells from many countries, including China. These higher tariffs, especially targeted at Chinese products, could create an opportunity for Indian exporters to step in. However, these same tariffs may also affect Indian exports to the U.S. due to higher costs and increased trade restrictions.
Adding to the concerns, the U.S. recently banned entry for nationals from 12 countries. This move could indirectly impact business operations, foreign hiring, and logistics related to solar exports from India. On the other hand, the ongoing Russia-Ukraine war continues to disrupt Europe’s energy markets. While this increases the urgency for European countries to shift to solar power, the war has also created trade and economic uncertainties. These may limit the growth of Indian solar exports in that region.
China still dominates solar manufacturing with its low costs and large-scale output. However, China’s decision to cut solar subsidies could reduce its production levels, giving India a possible advantage. At the same time, the Indian government has revised import duties on solar modules and cells to 20% in the latest budget. This aims to promote local production while keeping essential imports reasonably priced.
Despite global challenges, India’s solar sector remains strong. With rising manufacturing capacity, supportive policies, and new global opportunities, India is working to build a stronger presence in the global solar market. Continued focus on innovation and exports could help India grow its clean energy economy even further.
