In the first half of financial year (FY) 2016-17, import and export activity worth over $1 billion (~Rs.67 billion) was registered in the Indian solar sector, compared to $700 million (~Rs.44.5 billion) during the same period in 2015. During the six-month period, India exported solar modules and cells worth $52 million (~Rs.3.5 billion), and imported modules and cells worth $949 million (~Rs.63.5 billion). Compared to the same period in 2015, exports have increased by 12 percent and imports have grown by 47 percent.
China continues to be the single largest exporter of solar modules and cells to India accounting for $826 million (~Rs.56 billion) of India’s total solar imports with an 87 percent market share. Malaysia is the second largest exporter to India accounting for a $69 million (~Rs.4.7 billion) share of India’s overall imports and a market share of 7 percent.
According to developers who spoke to Mercom, unless India scales up its manufacturing capacity, cost of modules are not likely to come down.
The United Kingdom was the largest importer of Indian solar modules and cells, accounting for 36 percent of India’s total solar exports. According to Mercom’s Global Solar Forecast November 2016 Report, with budgetary cuts and no policy support, UK solar market is expected to decline. Italy accounts for 9 percent of exports, followed closely by China at over 8 percent.