India expects a boom in domestic solar cell production capacity in the coming months, reducing its reliance on imported ingredients from China to create solar panels.
By March 2025, the nation’s cell capacity is expected to have increased fivefold to approximately 30 gigawatts per year. This will allow the government to relax import restrictions to encourage local adoption of solar power gear and achieve the sector’s goal of increased self-sufficiency.
To wean itself off Chinese imports, India has imposed levies on some solar components and implemented a so-called approved list of models and manufacturers, a non-tariff trade barrier designed to keep foreign shipments out. US and European authorities have also complained that a torrent of new supply from Chinese solar companies has outstripped global demand, stifling efforts to create their supply networks.
While India’s local module output has increased as a result of existing import limitations, manufacturers continue to rely on China for various back-end items used in the production of solar panels.
Last year, the government was forced to temporarily lift the non-tariff import restriction on modules after the local industry complained that limited supply was causing project delays. Manufacturers are likewise looking for increased local demand before committing to new capacity.
In the lack of substantial local demand, manufacturers will be seeking strong growth in export markets for India-made cells and modules.