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India’s solar PV module manufacturing capacity is around 109 gigawatts | Photo Credit: REUTERS
The tariffs imposed by the US, which accounted for almost all of India’s solar PV module exports in 2024, is impacting competitiveness of the domestic manufacturing sector with outbound shipments declining for the first time in Q3 2025 after rising for four consecutive quarters.
“Module exports from Indian manufacturers declined this quarter due to the imposition of a 50 per cent tariff by the US. In Q3 2025, around 883 megawatt (MW) of modules were exported by 7 key players,” JMK Research & Analytics said.
In comparison, the April-June 2025 quarter witnessed around 1,346 MW of solar module exports. In the second quarter of 2025, Waaree and Adani collectively exported around 1,334 MW of solar PV modules, marking an increase of about 774 MW compared to Q1 2025.
“In Q1 2025, around 572 MW of modules were exported by four key players while in Q4 2024, 204 MW of module exports were registered by five players. Exports from Indian manufacturers have declined in recent quarters due to imposition of the Approved List of Models and Manufacturers (ALMM),” JMK Research & Analytics added.
The US is India’s main export destination accounting for 97 per cent and 99 per cent of the latter’s solar PV module exports in FY23 and FY24, respectively. Other countries include South Africa, Somalia, Kenya, the UAE, Afghanistan, Nepal and Bangladesh.
Another issue that threatens to impact the overall financial profile of the domestic solar PV module manufacturing sector is overcapacity, which is being further fuelled to some extent by the decline in exports.
India’s solar PV module manufacturing capacity is around 109 gigawatts (GW).
Recently, ICRA in a report said the imposition of US tariffs has adversely impacted export volumes, posing new challenges for the industry as the modules have been redirected from export market to the domestic market.
“Hence, the overcapacity in module production is likely to result in a consolidation of the smaller/ pureplay module players. However, ICRA anticipates the vertically integrated manufacturers to benefit over the long term due to greater control over the supply chain,” it added.
The International Renewable Energy Agency (IRENA) in its latest report notes that India is emerging as a major solar PV manufacturing and exporting hub, with domestic solar module manufacturing capacity growing from less than 5 GW in 2018 to more than 68 GW in 2024.
However, the export-oriented manufacturers in India are facing significant hurdles with the US imposing a total of 50 per cent tariff on Indian goods as of August 2025.
Prior to this, solar PV exports from India to the US increased 23 times between 2022 and 2024. Margins on overall exports were 40-60 per cent higher than domestic sales in 2024.
“The latest tariffs may curtail India-US solar PV trade, diminish margins on exports, and even slow the buildout of new factories in India,” IRENA added.
Germany-based EUPD Research emphasises that India’s solar manufacturing surge has delivered scale, and the focus should now be on global competitiveness.
“Identifying the most resilient markets and their stakeholders, and meeting emerging sustainability and quality requirements will be essential for long-term success,” said Markus A W Hoehner, Founder and CEO of EUPD Group.
Long-term competitiveness in India’s solar manufacturing sector will be shaped by advances in high-efficiency technologies, stronger ESG and innovation performance, and early alignment with emerging European regulatory and emissions requirements, EUPD Research stressed.
EUPD Research projects that India is expected to install about 213 GWdc of new solar capacity between 2025 and 2029 with annual additions averaging 42 GWdc.
At the same time, module manufacturing capacity could exceed 280 GW by 2030, while cell capacity is projected to rise from 26 GW in 2025 to roughly 171 GW by the end of the decade. This positions India among the largest integrated PV manufacturing bases worldwide.
Published on November 28, 2025
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