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India Slashes Solar Imports From China As Domestic Manufacturing Thrives

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New Delhi

In a departure from global trends, India has recorded a substantial 76 per cent drop in solar module imports from China during the first half of 2023 which reflects New Delhi’s resolute shift towards self-sufficiency in solar manufacturing, a new report said on Thursday.

Year-on-year, India’s solar module imports from China plummeted from 9.8 GW in the first half of 2022 to a mere 2.3 GW during the corresponding period in 2023, the report by global energy think tank Ember said.

This strategic shift, coupled with the imposition of tariffs, underscores India’s determination to minimise dependency on imports and prioritise the development of its domestic manufacturing capacity.

Neshwin Rodrigues, an India Electricity Policy Analyst at Ember, said, “India’s dependence on China for solar module imports is well and truly reducing post-2022. Domestic manufacturing is gaining momentum, thanks to recent policy interventions.”

“As India edges closer to self-sufficiency in solar manufacturing, reliance on Chinese modules and cells is no longer a constraint. What’s crucial now is creating an enabling policy environment to ensure that solar installations keep pace with the National Electricity Plan,” he said.

India started levying a customs duty of 40 per cent on solar modules and 25 per cent on solar cells from April 2022 in a bid to cut imports and boost local manufacturing.

The country’s commitment to reducing import dependency and nurturing a robust domestic solar manufacturing ecosystem aligns with the nation’s broader goals of sustainability and energy self-reliance.

According to its updated nationally determined contributions (NDCs), which are national plans to limit global warming to 1.5 degrees Celsius, India has committed to achieving 500 GW of installed power capacity from non-fossil fuel-based resources by 2030. Solar is at the heart of this ambitious goal.

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