Amid challenges from China, India to become exporter of solar modules by 2029: CRISIL

New Delhi [India], October 16 : India is set to become a significant player in the global solar module market by exporting solar modules to other countries by 2029, according to a report by CRISIL.
The report highlighted that as the domestic production of solar modules is expected to increase, India could begin exporting these modules to other countries in the near future. The report emphasized that India has the potential to become a global leader in solar module manufacturing, supported by a large pool of skilled labor, a growing manufacturing ecosystem, and abundant access to raw materials.
According to the report, the Indian government has introduced several policies aimed at boosting the domestic solar industry. As a result, the report projected that the country's solar module manufacturing capacity is projected to reach approximately 125 GW by fiscal 2029.
"Domestic demand for solar modules is estimated to be around 38-42 GW in the same year. This means that India will have a surplus of solar modules that can be exported to other countries" the report added.
The report also highlighted the growing global demand for solar energy, particularly in developing countries, which presents a major opportunity for Indian solar module manufacturers. Many of these countries are investing in solar energy to meet their rising energy needs, making them key markets for Indian exports.
To support the export of solar modules, the Indian government is providing various incentives, making it easier for manufacturers to enter new markets. By diversifying their exports to countries where demand is high and import duties are relatively low, Indian manufacturers can tap into significant growth potential.
However, Indian solar module manufacturers still face challenges. They must compete with established players.
"Indian solar module manufacturers need to overcome a few challenges, such as competition from China and high import duties in some countries" the report added.
Despite these hurdles, the report noted that the country's solar industry stands to benefit from the current anti-China sentiment, which could boost demand for Indian solar modules.
Overall, India's growing solar module manufacturing capabilities and government support position the country as an emerging leader in the global solar industry. The potential for exports could not only help India achieve its energy security goals but also spark a manufacturing renaissance in the country.