India imported solar cells and modules worth over $1.12 billion (~₹100.2 billion) in the fourth quarter (Q4) of 2025, a 55.6% year-over-year (YoY) increase from $723.4 million (~₹61.1 billion), according to data from the Department of Commerce.

In a quarter-over-quarter (QoQ) comparison, module and cell imports together increased by 34.4%, totalling over $837 million (~₹73 billion). Solar module imports rose 51.7%, while cell imports grew 30.5% from Q3 2025.

Although India’s Approved List of Models and Manufacturers (ALMM)-listed module manufacturing capacity increased to 173,144 MW after the latest addition of 11,035 MW, solar cell capacity under ALMM List-II is at 26,477 MW, with the latest revision adding only 437 MW.

The increase in solar cell imports in Q4 2025 was mainly driven by the structural gap between India’s rapidly expanding module manufacturing capacity and relatively limited domestic cell production. While module capacity has grown significantly, effective cell availability remains constrained due to ramp-up timelines, yield inefficiencies, and captive prioritization by integrated manufacturers. As a result, non-integrated module manufacturers continue to rely on imported cells to sustain production and meet delivery commitments.

Additionally, the upcoming requirement that modules must use ALMM List-II compliant domestic cells from June 1, 2026, prompted manufacturers to accelerate cell imports ahead of the deadline to secure supply under the existing framework. The significant capacity mismatch suggests that dependence on imported cells will likely continue until newly announced domestic cell manufacturing capacities become fully operational. Expectations of global price firming also encouraged advance procurement, contributing to the rise in cell imports in Q4 2025.

The Ministry of New and Renewable Energy has also clarified that DCR compliance is mandatory for all new PM KUSUM Component C projects, with no relaxation for projects for which letters of award were issued before March 31, 2024. This reinforcement of domestic sourcing norms triggered short-term procurement adjustments and inventory stocking before full compliance requirements take effect.

The increase in module imports in Q4 2025 was primarily driven by procurement flexibility in non-DCR segments and the timing of policy transitions. Open access, merchant, and several C&I projects continued to procure imported Chinese modules where regulations permitted, supported by cost advantages and immediate availability. At the same time, developers accelerated imports ahead of the June 1, 2026, ALMM List-II domestic cell mandate to secure supply under existing exemption windows, resulting in front-loaded procurement activity.

Domestic cell supply constraints also indirectly influenced import demand. Although DCR-compliant projects must use domestic modules, limited cell availability and captive prioritization by integrated manufacturers tightened overall supply conditions. This pushed segments with sourcing flexibility toward imports to avoid execution delays. In addition, expectations of global price increases following China’s VAT rebate withdrawal encouraged advance procurement, further contributing to the sharp rise in module imports in Q4 2025.

Additionally, the Directorate General of Foreign Trade’s mandate requiring registration of imported solar components under the Renewable Energy Equipment Import Monitoring System, effective November 1, 2025, has signaled tighter oversight. Importers have front-loaded shipments before full procedural enforcement, driving the quarter’s import growth.

China accounted for 59.6% of India’s solar imports, followed by Vietnam, Thailand, Indonesia, and Malaysia at 10.1%, 8.6%, 6.1%, and 6%. Other countries accounted for  9.6%.

Cells comprised 79.2% of total import shipments, and modules accounted for the remaining 20.8%.

Solar Exports

India exported solar cells and modules worth over $100.21 million (₹8.9 billion) in the fourth quarter (Q4) of 2025, a 52.8% year-over-year (YoY) decrease from $212.2 million (₹17.9 billion).

In a QoQ comparison, module and cell exports declined by 70.9% from over $344.5 billion (~₹30 billion). Solar cell exports decline 85.2%, while module exports fell 70.6%.

Exports fell sharply due to growing global trade restrictions and weaker external demand. India’s exports remain heavily dependent on the U.S. market, which accounted for 96.2% of shipments in Q4. Any demand moderation or regulatory tightening in the U.S. directly impacts India’s export volumes.

Modules made up 98.9% of total shipments, with cells accounting for the remaining 1.1%.

The UAE, Kenya, and Libya accounted for 1.8%, 0.3%, and 0.3% of total exports, respectively. Solar exports to other countries totalled about 1.3%.

As global trade tensions intensified, China filed a complaint with the World Trade Organization against India’s solar subsidies, and Canada initiated a review of anti-dumping measures on Chinese solar components, underscoring volatility in global solar trade.

Domestically, India imposed antidumping duties of up to 30% on Chinese solar cells after finding dumping margins of 105–115% and injury margins of 35-40%. While these measures protect domestic manufacturing, they disrupt supply chains and impact export pricing in the short term.

India also extended countervailing duties on solar glass from Malaysia and finalized antidumping duties on solar glass from China and Vietnam. The duties support upstream manufacturing, thereby increasing input costs for exporters during the transition period.

Q4 2025 reflects a transition phase in India’s solar manufacturing ecosystem. Imports increased due to structural cell shortages and policy transition timelines, while exports declined amid heavy dependence on the U.S. market and tightening global trade conditions. Overall, trade trends align with stronger regulatory enforcement and domestic manufacturing support measures, indicating a shift toward a more protected and vertically integrated framework, even as short-term imbalances persist.

Mercom’s India Solar EXIM Tracker provides detailed solar import and export data by component types, suppliers, manufacturers, and developers.

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