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India Solar Exports Tumble Amid U.S. Trade Headwinds
24 Nov
Summary
- September solar module exports dropped to $80 million from $134 million.
- U.S. trade measures, including tariffs, significantly impacted shipments.
- Slowing overseas demand raises concerns about domestic market oversupply.
India's solar module exports saw a significant downturn in September, dropping to approximately $80 million from $134 million recorded in August. This sharp decrease is largely a consequence of U.S. trade policies, including tariffs and intensified import scrutiny, which have curtailed shipments to the United States. Previously, the U.S. represented over 90% of India's solar module exports, making these new measures highly impactful.
The investigative risks and tariff impositions by the U.S. have materialized for some Indian manufacturers. This external pressure has exacerbated fears of an oversupply situation in the domestic market, as annual solar installations in India remain insufficient to meet the country's ambitious 2030 renewable energy targets.
Industry analysts predict consolidation among smaller module-only firms due to shrinking profit margins. Vertically integrated companies with cell and wafer production capabilities are expected to fare better. Some Indian firms are re-strategizing, focusing on cell, ingot, and wafer production over modules to mitigate potential price wars from overcapacity.
