New Delhi, Apr 26 (KNN) – The Indian solar manufacturing sector is poised to expand its market share as the United States implements stricter import regulations on solar equipment from China and Southeast Asian nations. This development presents a significant opportunity for India under the “Make in India” initiative, particularly in exports. In the past two years, Indian solar exports have experienced substantial growth due to the U.S. restrictions against Chinese solar products. From 2022 to 2023, exports from India surged by 227%, increasing from USD 561 million to USD 1.8 billion, with the U.S. market accounting for more than 97% of these exports.
The U.S. ranks as the world’s second-largest solar market, following China, while India holds the third position in terms of total installed solar capacity. Despite this, the U.S. heavily depends on imports for over 78% of its solar equipment, mainly sourced from China and Southeast Asian countries. In an effort to strengthen its domestic manufacturing capabilities, the Biden administration has enacted several policies over the past two years. However, U.S. manufacturers continue to face challenges in competing with lower-cost Chinese products.
This week, seven prominent U.S. solar companies have lodged trade complaints, advocating for tariffs on solar products imported from Southeast Asia. In June 2022, the U.S. had temporarily lifted duties on imports from Cambodia, Malaysia, Thailand, and Vietnam for a 24-month period to maintain supply chain continuity, a measure set to expire in June 2024. U.S. industry representatives have expressed concerns that Chinese manufacturers are shifting production to these neighboring countries to avoid existing U.S. tariffs. In 2023, the U.S. imported solar products valued at USD 12.5 billion, predominantly from Southeast Asian nations, which were reportedly offered at prices significantly below the market rate due to alleged dumping practices.
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