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India has invested heavily in building a domestic solar manufacturing ecosystem. Over ₹1 lakh crore has been committed to establish solar cell manufacturing capacity and develop an integrated value chain spanning cells, wafers, ingots and polysilicon. Yet, in FY 2025-26, India imported more than $3 billion worth of solar photovoltaic (PV) cells, with the overwhelming majority sourced from one nation.
At prevailing global prices, these imports are equivalent to approximately 70-80 GW of solar cells, enough to meet nearly two years of India’s annual demand. For a country pursuing self-reliance in clean energy manufacturing, this level of import dependence warrants serious attention.
The import trend is equally revealing. Solar cell imports stood at $1.85 billion in FY 2023-24, declined marginally to $1.64 billion in FY 2024-25, and then surged by 86 per cent to $3.06 billion in FY 2025-26.
The acceleration has been even sharper in recent months. Between January and April 2026 alone, India imported $1.37 billion worth of solar cells, compared to $702 million during the same period in 2025 and $528 million in 2024. Imports during the January to April period have nearly tripled in just two years.
The January to April period is particularly significant because solar cells generally have a usable shelf life of five to six months before module manufacturers prefer to process them into modules.
These imports are therefore not inventory being accumulated for future use. They are cells entering production during the current manufacturing cycle. Every imported cell assembled into a module represents demand that could have been met by an Indian cell manufacturer. Once that module is produced, the opportunity for domestic value addition has already been lost.
The implications extend beyond today’s cell manufacturers. Solar cells account for nearly half the value of a finished module and represent the technology-intensive core of the manufacturing process.
Weak utilisation of domestic cell capacity also weakens the commercial case for investments in wafers, ingots and polysilicon, precisely the upstream segments that India seeks to develop. Every imported cell shifts value addition, skilled employment, manufacturing know-how and future investment outside the country.
The concentration of imports adds another dimension. Nearly two-thirds of India’s solar cell imports over the past three years have originated from one nation.
Such dependence on a single source for a strategically important component exposes the industry to supply chain disruptions, pricing pressures and geopolitical risks.
As solar power becomes central to India’s energy security, resilience in the manufacturing supply chain becomes just as important as the pace of renewable energy deployment.
This is not an argument against international trade or healthy competition. Indian manufacturers recognise that global competition drives efficiency and innovation.
However, every successful manufacturing economy has provided policy stability while strategic industries mature.
Consistent implementation of ALMM List II for solar cells, faithful enforcement of Domestic Content Requirement provisions and a predictable procurement pipeline would provide the confidence required for manufacturers to continue investing across the upstream value chain.
The $3 billion spent on imported solar cells in FY 2025-26 is more than a trade statistic.
It represents demand that could have strengthened domestic manufacturing, accelerated technology adoption, created skilled employment and supported the next generation of investments in India’s solar ecosystem.
Building factories is only the first step. Ensuring that they remain competitive, fully utilised and integrated into India’s energy transition is the real test of a successful industrial policy.
The writer is Secretary General, Indian Solar Manufacturers Association (ISMA)
Published on August 23, 2026
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