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India's Solar PV Module Market Sees Strategic Shift Amid Changing Trade and Policy Dynamics

India’s solar PV module market is undergoing a notable shift, as highlighted by IEEFA and JMK Research. After two strong years of exports—especially to the US—India has seen a 36% year-on-year decline in solar module exports between April and January of FY2025. The primary reason is the implementation of the Approved List of Models and Manufacturers (ALMM) from April 2024. This policy mandates the use of approved Indian-made modules for government-linked solar projects, such as those from SECI and the PM Suryodaya scheme.

As a result, Indian manufacturers are now prioritizing domestic demand, which has become more lucrative, offering competitive prices compared to exports. This shift is evident in the export numbers—only 8% of India's solar PV modules were exported during this period.

Despite reduced exports, the US remains India’s biggest solar module export destination. Although a 10% tariff still applies to Indian goods, India holds a strategic edge. On April 21, the US imposed steep tariffs (ranging from 41% to 3,521%) on solar modules from Malaysia, Cambodia, Thailand, and Vietnam. This opens a window of opportunity for India to expand its market share in the US—provided it adopts a well-calibrated trade strategy to take advantage of the changing global dynamics.