India's Solar Panel Exports Experience Remarkable Growth as Global Demand Shifts from China
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New Delhi, Jan 2 (NationPress) India is rapidly emerging as a significant exporter of solar photovoltaic (PV) cells, with countries increasingly looking for alternatives to China in their transition to renewable energy to combat climate change.
From April to October in FY25, India exported $711.95 million worth of PV cells integrated into modules or panels, with an impressive 96 percent of these exports directed to the US, as the world’s largest economy moves away from reliance on China. Additionally, India exported $25 million in photovoltaic cells that were not yet assembled into modules during the same period, where 90 percent of these exports also went to the US.
The US remains a crucial market for Indian solar photovoltaic (PV) modules, representing over 97 percent of the nation’s solar PV exports in both FY2023 and FY2024.
India is making remarkable strides in its journey from being a net importer to becoming a net exporter of solar photovoltaic (PV) products, with export values skyrocketing 23 times to $2 billion in FY2024 compared to FY2022, as reported by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research & Analytics.
“Concentrating on the US market can significantly benefit the Indian PV manufacturing ecosystem. This exposure will allow Indian PV manufacturers to achieve economies of scale, subsequently improving product quality and competitiveness,” stated Vibhuti Garg, Director – South Asia, IEEFA, and contributing author of the report.
“However, for India to establish itself as a global manufacturing hub in the long term, Indian PV manufacturers must prioritize upstream backward integration. This strategy will ensure India retains its position in existing markets while exploring untapped markets like Europe, Africa, and Latin America,” she added.
Simultaneously, the report emphasizes the necessity for PV manufacturers in India to balance the demands of the growing export market with domestic supply needs.
India's electronics sector is gaining traction, with its contribution to national exports climbing to 7.9 percent in 2024 from 3.3 percent in 2014, with solar panel exports becoming a key product alongside smartphones in international shipments.
Electronics goods have emerged as the fastest-expanding segment within India’s export economy, fueled by the success of the Centre’s Production-Linked Incentive (PLI) scheme.
The PLI scheme and the swift approvals from the government are proving to be major successes as global companies seek alternatives to an isolated China to establish new supply chains.
India's electronics exports surged by an impressive 27.4 percent to $22.5 billion from April to November in 2024-25, compared to $17.66 billion during the same timeframe in 2023-24.
Electronics goods have now risen to third place among the leading performers in India’s export sector, following engineering products and petroleum, up from the sixth position last year.
