India’s imports of photo voltaic photovoltaic (PV) cells from China — for meeting into modules or panels — jumped 141 per cent, from round 1.89 billion items in 2023-24 (FY24) to 4.55 billion in FY25, official commerce information exhibits.
Imports of PV cells assembled into modules dipped solely 2 per cent, from 35.98 million to 35.26 million panels, regardless of the Permitted Record of Fashions and Producers (ALMM) order proscribing using imported modules in most utility-scale and rooftop photo voltaic initiatives from April 1, 2024.
India’s photo voltaic module manufacturing capability has surged from 38 gigawatt (GW) in March 2024 to 91 GW now, the Ministry of New and Renewable Vitality (MNRE) advised The Indian Categorical.
“The rise in home photo voltaic PV module manufacturing capability appears to have contributed to extend in import of photo voltaic PV cells,” the ministry mentioned. Whereas India’s photo voltaic cell manufacturing capability has additionally grown — from 9 GW in March 2024 to 25 GW now — it nonetheless falls in need of assembly the full demand for modules.
‘Continued module imports as a consequence of ALMM exemptions’
The MNRE, which reimposed the ALMM order in FY25 after retaining it in abeyance throughout FY24, added that “a number of exemptions” exist underneath the order. These embrace initiatives the place the final bid submission date was earlier than April 10, 2021, sure internet metering initiatives utilized for earlier than October 2022, behind-the-meter captive initiatives, and photo voltaic installations for the manufacturing of export-oriented inexperienced hydrogen.
“Regardless of ALMM being in drive, these exemptions appear to be the explanation for continued import of photo voltaic PV modules,” the ministry mentioned. In a letter dated March 3, 2025, the MNRE requested state governments to strictly implement the ALMM order for photo voltaic PV modules, besides in instances the place initiatives qualify for exemptions listed above or have been particularly exempted by the ministry or an authorised company.
Total, photo voltaic cell imports rose 88 per cent — from 2.69 billion items price Rs 15,335 crore in FY24 to five.06 billion items price Rs 13,905 crore in FY25 — as China’s share elevated from 70 to 90 per cent. Module imports, in the meantime, fell 15 per cent, from 48.48 million panels (Rs 36,134 crore) to 40.99 million (Rs 18,263 crore).
Home cell capability anticipated to surge
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Usually, photo voltaic cells are manufactured utilizing wafers comprised of polysilicon ingots. By 2030, India goals to ramp up its photo voltaic cell manufacturing capability to 100 GW and wafer capability to 40 GW — a steep rise from the present 2 GW.
Amit Paithankar, chief govt officer at Waaree Energies Ltd, India’s largest photo voltaic module producer, mentioned there shall be “a considerable development in cell capability” within the coming years.
“Module manufacturing has taken off as a result of ALMM for modules was launched earlier and has been steadily enforced. ALMM for cells can also be coming subsequent yr – that’s the acknowledged coverage. So, in a really steadfast method, cell manufacturing will preserve growing and the import content material of cells will preserve taking place,” he advised The Indian Categorical.
The ALMM order for photo voltaic PV cells will take impact from June 1, 2026. “While you put ALMM for modules, there’s a wave — huge capability will get arrange in 2-2.5 years. Then, with ALMM for cells, too, you’ll see a wave. There’ll at all times be a time shift. When there’s an ALMM for ingots and wafers, you’ll see the same wave occur,” Paithankar added.
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Dumping of Chinese language cells stays a priority
A key problem to scaling up home cell manufacturing, nonetheless, is sustained worth dumping from China. Whereas cell imports from China rose 141 per cent in amount between FY24 and FY25, their worth elevated solely 34 per cent — indicating a pointy fall in per-unit costs.
The Directorate Normal of Commerce Treatments (DGTR), India’s commerce watchdog, is presently investigating an anti-dumping case on Chinese language photo voltaic cell imports.
Sujoy Ghosh, managing director of First Photo voltaic India, which together with different producers initiated the DGTR investigation, mentioned, “A number of governments have discovered proof of Chinese language corporations utilizing anti-competitive measures, together with dumping, to decimate worldwide competitors. Our view is that dumping, whether or not from China or via its Belt and Street Initiative companions in Southeast Asia, undermines India’s purpose of securing its vitality know-how provide chains, and have to be investigated and firmly addressed.”
“The results of China’s systemic overcapacity are plain to see from the financials of the most important Chinese language photo voltaic producers. Furthermore, their monetary outcomes additionally seem to mirror the follow of promoting merchandise at costs under their price of manufacturing,” he added. In latest quarters, a number of Chinese language photo voltaic corporations have reported heavy losses amid trade overcapacity and softening demand.
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Chinese language dominance in wafer-making tools a hurdle
Authorities and trade sources say one other problem in absolutely integrating the polysilicon-to-cell worth chain is China’s dominance in wafer-making tools, which stays restricted for export to India. Sumant Sinha, chief govt of ReNew, mentioned an answer is feasible via a “G2G (government-to-government) dialog” and that it’s “impractical” to make the tools in India as of now.
Paithankar mentioned there’s robust collaboration between numerous corporations in India, China, and elsewhere in the case of tools. “Whereas now we have good relationships with corporations in China, we’re additionally continuously methods to diversify that a part of the provision chain,” he added.
For example of efforts to look past China, Vinay Rustagi, chief enterprise officer at Premier Energies Ltd, mentioned the corporate is establishing a 2 GW wafer manufacturing plant via a three way partnership with Taiwan’s SAS, among the many world’s largest silicon wafer producers.
Some producers are utilizing different applied sciences. “First Photo voltaic doesn’t depend on the crystalline silicon ecosystem that’s presently monopolized in China, and now we have invested in creating our personal manufacturing ecosystem over the previous 25 years… As a matter of reality, it took us simply 19 months to construct 3.3 gigawatts of vertically built-in nameplate manufacturing capability,” Ghosh mentioned.
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The Arizona-headquartered firm, which operates a plant in Chennai, manufactures CdTe thin-film PV modules utilizing a differentiated semiconductor and manufacturing course of. “Our superior, extremely differentiated manufacturing course of permits us to remodel a sheet of glass into ready-to-ship skinny movie photo voltaic panels in roughly 4 hours,” Ghosh mentioned.