The export of solar PV cells and modules by Indian manufacturers witnessed a sharp increase to INR 8,440 crore (around $1.03 billion) in FY2023 against INR 1,819 crore in the previous year. This was supported by increased demand for modules from the USA amid the restrictions imposed on module sourcing from China.
The exports to the USA accounted for 97% of the total solar PV module exports from India in FY2023.
Also, the significant ramp-up in domestic module manufacturing capacities over the past 18 months has supported the growth in exports. The OEMs benefited from the higher realizations in the export markets than in the domestic market.
The exports largely constitute solar PV modules, and the share of PV cell exports was only 0.1% in FY2023.
The export buoyancy continued in the current fiscal, with the first two months of FY2024 witnessing solar PV module and cell exports of INR 2,457 crore against INR 130 crore in the corresponding period of the previous year.
Going forward, the export demand would be a function of the restriction by the USA on imports from China and the development of domestic module manufacturing units in the USA given the incentives under the Inflation Reduction Act.
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