India is steadily establishing itself as a key player in the global solar photovoltaic (PV) market, leveraging its abundant sunlight and the increasing domestic and international push towards renewable energy. The country primarily exports two solar products—unassembled solar PV cells and fully assembled solar modules. Both these segments have shown significant growth in recent years. However, India continues to rely heavily on imported components for solar cell manufacturing, which reduces its competitiveness in the global market.
To address this gap, the government introduced the Approved List of Models and Manufacturers (ALMM) policy on April 1, 2024. This policy requires the exclusive use of locally manufactured solar panels in government-supported projects. Further, solar cells are expected to be included in this approved list by June 2026. This policy shift has encouraged local manufacturers to expand their production capacities to meet both domestic and global demand. India’s export performance reflects this growing strength. Between January and April 2025, the country exported solar PV products worth ₹398,031.53 lakh, with solar modules contributing ₹392,835.10 lakh and PV cells ₹5,196.43 lakh. In April 2025 alone, exports included solar modules worth ₹163,930 lakh and PV cells worth ₹2,159 lakh, highlighting the increasing role of India in global clean energy supply chains.
The global solar market, however, is going through rapid changes that are reshaping trade flows. Countries like the United States and those in Europe are making efforts to reduce their dependence on Chinese solar products. The U.S., in particular, has recently imposed higher import tariffs on several countries, including India, which affects solar modules and cells. On August 27, 2025, the U.S. government imposed a new round of steep tariffs specifically on Indian exports. This decision is expected to make Indian products costlier in the American market, impacting competitiveness and possibly slowing down export momentum. It could also affect logistics, hiring of foreign staff, and the overall ease of doing business for Indian companies engaged in the solar trade with the U.S.
In Europe, the ongoing Russia-Ukraine war has created an urgent push towards renewable energy as countries look for alternatives to conventional fossil fuel supplies. While this presents opportunities for Indian exporters, the conflict has also brought uncertainty in trade, finance, and supply chains. These factors may restrict India’s ability to expand rapidly in European markets despite the growing demand for solar energy.
China continues to dominate solar manufacturing globally, mainly because of its large-scale production capabilities and cost efficiencies. However, its recent move to cut solar subsidies could reduce its output, offering India some room to expand its role in international markets. The Indian government has also revised import duties on solar modules and cells to 20% in the latest budget, to encourage local manufacturing while ensuring that necessary imports remain affordable.
Despite the global headwinds of tariffs, conflicts, and stiff competition, India’s solar industry remains resilient. Rising domestic demand, expanding manufacturing capacity, government policies like ALMM, and emerging global opportunities are helping the country strengthen its position. With continued focus on innovation, cost reduction, and international partnerships, India is well placed to enhance its role in the global clean energy transition while building a stronger and self-reliant solar economy.
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