ndia’s solar industry saw a major setback in September as solar exports fell by nearly 40%, according to new trade data. This sharp drop highlights the rising pressure on India’s solar manufacturing sector, especially as global market conditions shift and competition intensifies.
Why Indian Solar Exports Fell
The decline in solar exports has been linked to several key factors:
- Global oversupply of solar modules, mainly from China.
- Falling international prices, making Indian modules less competitive.
- Reduced demand from major markets, including the US and Europe.
- Tougher certification and quality norms in export destinations.
Impact on Indian Solar Manufacturers
The 40% drop in exports has created challenges for domestic solar companies:
- Inventory buildup is rising.
- Profit margins are shrinking due to price pressure.
- Smaller manufacturers face higher risk of shutdown or consolidation.
- New capacity additions may slow down in 2025.
Government Response
The Indian government is expected to review the situation, especially as the nation pushes for:
- 500 GW renewable capacity by 2030
- Higher domestic solar manufacturing
- Reduced import dependency
Schemes like the PLI (Production Linked Incentive) may be adjusted to strengthen cost competitiveness.
What This Means for the Sector
The sharp export decline may:
- Slow India’s solar manufacturing momentum
- Affect short‑term revenue for major solar firms
- Increase reliance on domestic demand for growth
However, strong government support and long‑term renewable goals continue to provide stability for the sector.
