India is making significant strides in the global solar photovoltaic (PV) cells market, with a marked increase in exports as countries seek alternatives to China for sourcing supplies. This shift is part of a broader global transition towards renewable energy sources in the fight against climate change. Between April and October FY25, India exported $711.95 million worth of PV cells assembled in modules or panels. A staggering 96% of these shipments were destined for the US, indicating a clear pivot away from China by the world's largest economy.

In addition to assembled modules, India also exported $25 million worth of photovoltaic cells that were not assembled into modules during the same period. Again, the US was the primary destination, receiving 90% of these exports. The US has consistently been a key export market for Indian solar photovoltaic (PV) modules, accounting for more than 97% of the country's solar PV exports in both FY2023 and FY2024.

India's Transition from Importer to Exporter

India's transition from a net importer to a net exporter of solar photovoltaic (PV) products is noteworthy. According to a report by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research & Analytics, the export value rose 23 times to $2 billion in the Fiscal Year (FY) 2024 from FY2022.

Vibhuti Garg, Director - South Asia, IEEFA, emphasized the benefits of focusing on the US market. She stated, The exposure to the US market will enable Indian PV manufacturers to attain economies of scale, ultimately enhancing their product quality and competitiveness. However, Garg also highlighted the need for Indian PV manufacturers to focus on upstream backward integration to establish India as a global manufacturing hub in the long run.

Balancing Export Market Needs with Domestic Availability

The report also underscored the importance of balancing the needs of the growing export market with domestic availability for PV manufacturers in India. This balance is crucial as India's electronics sector is gaining prominence, with its share in the country's exports rising to 7.9% in 2024 from 3.3% in 2014.

The growth of the electronics sector, including solar panel exports and smartphones, is driven by new manufacturing capacities that have come up in the country, thanks to the success of the Centre's production-linked incentive (PLI) scheme. The PLI scheme and quick clearances by the government are proving to be a major success as global giants look beyond an alienated China for setting up alternative supply chains.

The country's electronic exports jumped by a robust 27.4% to $22.5 billion in April-November 2024-25, from $17.66 billion during the same period in 2023-24. Electronic goods have now moved up to the third position among the top performers in India's export sector, next only to engineering products and petroleum, from the sixth position last year.