India’s Solar Panel Exports Surge as Global Demand Shifts Beyond China
India is rapidly emerging as a key player in global solar photovoltaic (PV) cell exports, as countries increasingly seek alternatives to China in their transition to renewable energy sources to combat climate change.
New Delhi: India is rapidly emerging as a key player in global solar photovoltaic (PV) cell exports, as countries increasingly seek alternatives to China in their transition to renewable energy sources to combat climate change.
In the first half of FY25 (April-October), India exported a total of $711.95 million worth of PV cells assembled into modules or panels, with an impressive 96% of these shipments directed to the United States. This reflects the growing trend of the US moving away from Chinese suppliers. Additionally, India exported $25 million worth of photovoltaic cells not assembled into modules during the same period, with 90% of these exports also heading to the US.
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The US has consistently been the dominant market for Indian solar PV products, accounting for over 97% of India’s total solar PV exports in both FY2023 and FY2024.
India’s export growth in the solar sector is noteworthy, as the country is transitioning from being a net importer to a net exporter of solar PV products. According to a report by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research & Analytics, India’s solar PV export value skyrocketed 23-fold to $2 billion in FY2024 compared to FY2022.
Growing Indian Solar PV Manufacturing Ecosystem
The focus on the US market has played a crucial role in strengthening India’s solar PV manufacturing ecosystem. Vibhuti Garg, Director of South Asia at IEEFA, emphasized that exposure to the US market allows Indian manufacturers to achieve economies of scale, improve product quality, and become more competitive globally. However, for India to establish itself as a global manufacturing hub in the long term, Garg stresses the importance of upstream backward integration in the supply chain.
This integration will allow India to secure its position in existing markets while also unlocking new opportunities in untapped regions like Europe, Africa, and Latin America.
India’s Electronics Sector on the Rise
India’s electronics sector is also gaining momentum, with its share in total exports rising to 7.9% in 2024, up from 3.3% in 2014. Solar panel exports are a significant contributor to this growth, alongside smartphones. The expansion of manufacturing capacities in India, supported by the Centre’s production-linked incentive (PLI) scheme, has accelerated the rise of electronics exports.
India’s electronic exports surged 27.4% in April-November 2024-25, reaching $22.5 billion, compared to $17.66 billion during the same period in the previous year. Electronics goods now rank third in India’s export performance, just behind engineering products and petroleum.
Key Takeaway: India’s Growing Role in Global Solar Exports
India’s solar panel exports and overall electronics export growth reflect the country’s increasing influence in global renewable energy supply chains. The combination of government-backed incentives, rapid manufacturing capacity growth, and a shift away from China by global markets positions India as a leader in solar PV exports and electronics manufacturing.
