New Delhi, Jan 2 India is emerging as a major exporter of solar photovoltaic (PV) cells as countries look for alternatives to China for sourcing supplies in their switch to renewable energy to fight climate change.
In April-October FY25, India exported $711.95 million worth of PV cells assembled in modules or panels with 96 per cent of the shipments going to the US with the world's largest economy turning away from China. India also exported $25 million of photovoltaic cells that were not assembled into modules in April-October FY25 with 90 per cent of the exports going to the US.
The US was also a key export market for Indian solar photovoltaic (PV) modules, accounting for more than 97 per cent of the country’s solar PV exports in both FY2023 and FY2024.
India is making significant progress in transitioning from a net importer to a net exporter of solar photovoltaic (PV) products, with the export value rising 23 times to $2 billion in the Fiscal Year (FY) 2024 from FY2022, according to a report by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research & Analytics.
"Focusing on the US market can benefit the Indian PV manufacturing ecosystem. The exposure to the US market will enable Indian PV manufacturers to attain economies of scale, ultimately enhancing their product quality and competitiveness," said the report’s contributing author, Vibhuti Garg, Director – South Asia, IEEFA.
“But, to truly establish India as a global manufacturing hub in the long run, Indian PV manufacturers must focus on upstream backward integration. This will help India maintain its foothold in existing markets while unlocking untapped markets like Europe, Africa, Latin America, etc,” she added.
At the same time, the report also notes that it is important for PV manufacturers in India to balance the needs of the growing export market with domestic availability.
India’s electronics sector is gaining prominence, with its share in the country’s exports rising to 7.9 per cent in 2024 from 3.3 per cent in 2014 with solar panel exports also figuring as a major product along with smartphones in the overseas shipment consignments.
Electronics goods have emerged as the fastest-growing segment in India’s export basket as new manufacturing capacities have come up in the country driven by the success of the Centre’s production-linked incentive (PLI) scheme.
The PLI scheme and quick clearances by the government are proving to be a major success as global giants look beyond an alienated China for setting up alternative supply chains.
The country’s electronic exports jumped by a robust 27.4 per cent to $22.5 billion in April-November 2024-25, from $17.66 billion during the same period in 2023-24.
Electronic goods have now moved up to the third position among the top performers in India’s export sector, next only to engineering products and petroleum, from the sixth position last year.
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