India's solar imports could reach $30 billion annually as the country strives for 500 GW of renewable energy by 2030, facing challenges from reliance on Chinese suppliers.
India’s solar imports could surge to $30 billion annually as the nation aims for 500 GW of renewable energy capacity by 2030, the Global Trade Research Initiative (GTRI) reports. In the 2023-24 fiscal year, India has added 15 GW of solar capacity, bringing the total to 90.8 GW—up from just 2.8 GW in 2014.
Despite initiatives like the Production Linked Incentive (PLI) scheme to boost local manufacturing, GTRI founder Ajay Srivastava highlighted the ongoing reliance on imports, particularly from China. The report emphasizes the need for India to develop a self-sufficient solar manufacturing ecosystem, focusing on polysilicon and wafer production to curb costs.
India imported $7 billion in solar equipment last fiscal year, with 62.6% coming from China, which controls 97% of polysilicon and 80% of solar modules globally. While the Indian government has invested over $4.5 billion in the PLI scheme, the country’s solar manufacturing sector remains largely dependent on assembling imported components.
To reduce import dependency, India has implemented tariffs of 40% on solar modules and 25% on solar cells, though imports from ASEAN countries are exempt. GTRI calls for enhanced investment in domestic solar production and collaboration with nations like the U.S., EU, and Japan to establish large-scale manufacturing capabilities.
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