India Set to Shine as Global Solar Module Powerhouse by 2029

India is poised to become a key player in the global solar module market, exporting surplus modules by 2029 due to enhanced production and supportive government policies. The nation's growing manufacturing capabilities and favorable global conditions present significant opportunities, albeit amidst competition and challenges.

India is gearing up to become a pivotal entity in the global solar module sector, with plans to commence exports by 2029. According to a report by CRISIL, India's escalating domestic production could transform the country into a major exporter in the near future. The report underscores India's potential to lead in solar module manufacturing, underpinned by skilled labor, a robust manufacturing ecosystem, and ample raw materials.

Government initiatives aimed at bolstering the domestic solar industry are projected to elevate India's solar module manufacturing capacity to about 125 GW by the fiscal year 2029. With domestic demand estimated between 38-42 GW, the surplus could be channeled to international markets. This creates a pathway for India to embark on exporting these modules to countries experiencing heightened solar energy demand.

Moreover, the burgeoning global appetite for solar solutions, especially in developing nations, offers substantial opportunities for Indian manufacturers. These countries are increasingly investing in solar energy to fulfill growing energy needs, positioning them as strategic markets for India's exports. The Indian government's incentives further facilitate manufacturers' entry into these markets, enabling them to leverage growth potential by targeting nations with high demand and low import tariffs.

Nonetheless, Indian exporters face significant challenges, including competition from established players like China and high import duties in certain regions. Despite these obstacles, the report points out the favorable impact of the current anti-China sentiment, potentially increasing demand for Indian modules. In essence, India's expanding solar manufacturing prowess and governmental backing poise the nation to emerge as a global leader in the solar industry, potentially igniting a manufacturing renaissance and ensuring energy security.

(With inputs from agencies.)