The proportion of solar photovoltaic (PV) cells and modules imported by India from China has been steadily decreasing since FY23, due to an expansion in domestic manufacturing capacity over the past year.
Despite the decline, China remains the dominant supplier, contributing over 60% of India’s combined cell and module imports. In FY23, China provided an overwhelming 94% of India’s total solar PV cell imports and 93% of module imports.
In FY24, China’s share of solar PV cell and module imports fell to 56% and 66%, respectively. For April-May of FY25, China’s share was 68% for cells and 59% for modules.
In terms of monetary value, India’s imports of solar PV cells and modules were approximately $1.7 billion in FY20. The amount dropped to $571.65 million in FY21 due to the pandemic. The following year, imports increased to $4.5 billion, and in FY23, they fell to $2.25 billion but surged to a record $6.21 billion in FY24.
During April-May of FY25, imports totalled around $551 million. China continues to hold a major share of these imports, with Vietnam, Thailand, Malaysia, and Singapore also contributing, though on a smaller scale.
In FY24, Vietnam supplied about 5% of India’s solar PV cell imports and 22% of module imports. For April-May of FY25, these figures were over 12% for cells and 38% for modules.
The increase in domestic module manufacturing is expected to enhance the availability of locally produced modules. As reported by thehindubusinessline.com, India will still rely on imports for solar PV cells and wafers due to limited domestic cell manufacturing and the absence of wafer production capacity, as noted by ICRA in February 2024.