Solar modules. Featured Image: Jackiso/Shutterstock.com
In the fiscal year to March 31 India imported 5.7 GW of solar modules, or about 89% of the volumes it needed, mostly from China.
Bridge to India warns that over reliance on Chinese photovoltaic (PV) products makes the Indian solar sector vulnerable to potential disruptions in global supply chain and changes in Chinese policy.
“The Indian government needs to consider long-term implications for the sector and draw up a well thought out plan for domestic manufacturing instead of introducing short-term support measures,” the consultancy said in a post on Monday.
According to Department of Commerce data, analysed by Mercom Capital Group, China’s market share in India was 88.1% in fiscal 2016-17. The total value of solar imports in the period stood at USD 3.2 billion (EUR 2.9bn), up by 36% year-on-year, with China’s share at roughly USD 2.8 billion.
Malaysia and Taiwan grabbed market shares of 6.6% and 1.8%, respectively.
Import and export activity in the past fiscal year reached USD 3.27 billion, as compared to USD 2.52 billion in FY 2015-16, as solar deployment in the country grew to over 5.5 GW from 3 GW a year back. India manufacturers exported solar modules and cells worth USD 69 million, mainly to the UK, Italy, Belgium, the US and China.