India is positioning itself as a major player in the global solar photovoltaic (PV) market, seizing opportunities as countries seek alternatives to China for renewable energy supplies. This surge in exports reflects India’s growing prominence in the transition to renewable energy, crucial in the global fight against climate change.
Between April and October of the fiscal year 2025, India exported $711.95 million worth of PV cells, primarily in the form of assembled modules and panels. Remarkably, 96% of these exports went to the United States, which is increasingly shifting away from China. Additionally, India exported $25 million worth of unassembled PV cells during the same period, with 90% of this also directed to the US. This shift highlights the changing dynamics of the global solar market, with India capturing a larger share of the PV supply chain.
The United States has become the dominant market for Indian solar PV products. In both fiscal years 2023 and 2024, the US accounted for more than 97% of India’s total solar PV exports. As the world’s largest economy looks for alternative sources of renewable energy products, India’s export sector has been quick to respond, offering high-quality, competitively priced solar solutions.
India’s Rapid Transition To Exporter
India’s solar PV industry has made a remarkable transition from being a net importer to a net exporter of solar products. The export value surged dramatically, increasing 23 times to $2 billion in FY 2024 compared to FY 2022, according to a report by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research & Analytics. This growth highlights India’s increasing role in the global renewable energy supply chain and its potential for further expansion.
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The report emphasizes that focusing on the US market offers significant advantages for Indian PV manufacturers. Exposure to this large market will help Indian manufacturers achieve economies of scale, improving product quality and global competitiveness. However, for India to become a global manufacturing hub in the long term, the report advises Indian PV manufacturers to invest in upstream backward integration. This would enable India to maintain a strong presence in existing markets while opening new opportunities in Europe, Africa, and Latin America.
Balancing Export Growth With Domestic Demand
While India’s PV exports are on the rise, the report stresses the importance of balancing this growth with the domestic supply of solar products. Ensuring that India meets its own growing renewable energy needs while expanding its export capacity will be essential to sustaining long-term industry growth.
India’s electronics sector, which includes solar panels, is also experiencing significant growth. The sector’s share in India’s total exports has risen to 7.9% in 2024, up from just 3.3% in 2014. Solar panel exports, along with smartphones, are now among the major products in the country’s overseas shipments.
The success of the government’s Production-Linked Incentive (PLI) scheme has played a crucial role in this growth, fostering the establishment of new manufacturing capacities and attracting global players seeking alternative supply chains outside of China. With strong government support and infrastructure improvements, India’s electronics and solar export sectors are set to continue their upward trajectory.
Robust Growth In Electronics Exports
India’s electronics exports saw a significant jump of 27.4% in the first half of FY 2024-25, reaching $22.5 billion, compared to $17.66 billion during the same period in FY 2023-24. As a result, electronics have risen to the third position among the top performers in India’s export sector, behind only engineering products and petroleum, up from sixth place last year.
India’s success in the solar PV and electronics sectors highlights the country’s increasing role as a global manufacturing hub. With continued government support and growing international demand, India is poised to maintain its momentum as a leading exporter in these key industries.
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