India’s solar panel exports, which experienced rapid growth in 2022-23, have plateaued in the first quarter of the current financial year. The slowdown is attributed to increasing protectionist measures by key trade partners, particularly the US, which remains the largest buyer of Indian solar panels.
In April-June of this fiscal year, solar panel exports – technically referred to as “photovoltaic cells assembled in modules or panels” – fell by 0.8% year-on-year to $450 million. This marks a significant contrast from the 90% year-on-year growth recorded in 2023-24.
While the US has not directly targeted Indian solar panel exports, its recent trade actions, including higher duties on solar cells and modules, have impacted the sector. In May, the US initiated an anti-dumping investigation into photovoltaic cell imports from countries like Cambodia, Malaysia, Thailand, and Vietnam, and raised duties on solar cells and modules to 50%, up from 25%.
India’s solar panel exports have been heavily dependent on the US market. In 2022-23, the first year solar panels were categorized separately in trade records, India exported $1.03 billion worth of panels, with $1.0 billion going to the US. By 2023-24, exports grew by 90% to $1.96 billion, with $1.93 billion going to the US.
Comparatively, India’s smartphone exports have continued to grow at a healthy rate. In April-June of this fiscal year, smartphone exports grew 31.6% to $4.9 billion, with over 40% of these exports going to the US. For FY24, smartphone exports stood at $15.5 billion.
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