China Supplies 350 Lakh Solar Modules to India in FY25 Amid Push for Domestic Manufacturing – EQ

In Short : India imported more than 350 lakh solar modules from China in FY25, underscoring its reliance on foreign supply despite rising domestic manufacturing. Industry experts note that competitive pricing and bulk availability continue to drive imports. However, India is pushing policies to boost local production, aiming to strengthen self-reliance in solar equipment and reduce external dependence.

In Detail : India imported more than 350 lakh solar modules from China during FY25, reflecting the country’s continued dependence on foreign supply chains for renewable energy expansion. Despite significant policy push to encourage domestic manufacturing, Chinese modules remain attractive due to their cost-effectiveness and large-scale availability.

The influx of imports has raised concerns among local manufacturers who are striving to expand capacity and compete. While India’s solar sector is witnessing rapid growth, the imbalance between local production and imports highlights the challenges of achieving true self-reliance in this strategic industry.

Experts believe that the heavy inflow of Chinese modules is driven by competitive pricing and favorable financing structures offered by Chinese companies. This makes them appealing for developers looking to execute projects at scale within tight timelines and budgets.

The Indian government has taken multiple steps to promote domestic manufacturing, including Production Linked Incentive (PLI) schemes, safeguard duties, and approved manufacturing zones. These initiatives aim to reduce reliance on imports and strengthen the solar supply chain within the country.

However, industry stakeholders argue that scaling up local production requires more time and sustained policy support. High capital costs, lack of raw materials, and global competition continue to hinder the pace at which Indian manufacturers can match Chinese volumes.

At the same time, India’s ambitious renewable energy targets, including 500 GW of non-fossil fuel capacity by 2030, are driving massive demand for solar modules. To meet project timelines, developers often turn to imports to avoid delays in large-scale project execution.

The surge in imports also highlights the need for balancing affordability with long-term sustainability. While cheaper modules help lower project costs, over-reliance on external sources poses risks for energy security and the domestic manufacturing ecosystem.

Government officials have reiterated their commitment to making India a global hub for solar manufacturing. With new investments flowing into module and cell production, the next few years will be critical in determining whether the country can reduce its dependence on imports.

The 350 lakh solar modules imported from China in FY25 emphasize both opportunity and challenge for India’s solar sector. As demand continues to grow, aligning industrial policy, local capacity, and project requirements will be crucial for building a resilient and self-reliant renewable energy future.