India's Solar Photovoltaic (PV) Market and Chinese Imports

Overview of Import Trends

India has seen a significant increase in imports of solar photovoltaic (PV) cells from China, which rose by 141%, from 1.89 billion units in FY24 to 4.55 billion units in FY25. This rise contrasts with a slight decrease in imports of PV cells assembled into modules, which fell by only 2%, from 35.98 million to 35.26 million panels.

Domestic Manufacturing Capacity

• India's solar module manufacturing capacity expanded significantly from 38 GW in March 2024 to 91 GW in the present.
• Solar cell manufacturing capacity grew from 9 GW to 25 GW, yet it still falls short of the demand for modules.

Approved List of Models and Manufacturers (ALMM) Order

The ALMM order, which restricts the use of imported modules in certain projects, was reimposed in FY25. Various exemptions under this order have allowed continued importation of solar PV modules despite the restrictions.

Future Expansion Plans

• India aims to scale its solar cell manufacturing capacity to 100 GW and wafer capacity to 40 GW by 2030.
• The Approved List of Models and Manufacturers (ALMM) for solar PV cells will be effective starting June 1, 2026.

Challenges: Dumping and Equipment Dominance

• Dumping of Chinese cells, indicated by a significant increase in imports but a small rise in value, is under investigation by the Directorate General of Trade Remedies (DGTR).
• China dominates the wafer-making equipment sector, posing a challenge to India’s solar manufacturing industry.

Efforts to Diversify Supply Chain

• Companies like Premier Energies Ltd are entering joint ventures with Taiwan’s SAS to set up wafer manufacturing plants.
• First Solar India uses alternative manufacturing technologies, reducing reliance on the crystalline silicon ecosystem dominated by China.

Conclusion

India's solar PV market is rapidly growing, with increasing manufacturing capacity and initiatives to reduce dependence on Chinese imports through strategic policies and partnerships. However, challenges like dumping practices and equipment sourcing remain significant hurdles.