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Surge in Chinese Wafer Imports Raises Concerns for India’s Solar Manufacturing

In 2023, Chinese wafer exports to India skyrocketed by 91% to $318 million, posing a potential challenge to India's ambition of building a self-sufficient solar supply chain. While tariffs on solar modules have helped boost domestic manufacturing, the upstream segment—polysilicon, ingots, and wafers—remains highly dependent on imports.

Industry Concerns & Possible Solutions

• Need for Safeguard Duties & Incentives – Indian manufacturers are urging the government to impose tariffs on wafers and introduce incentives to strengthen the local supply chain.
• Tariff Impact on Costs – While duties on modules helped domestic players, extending them upstream could increase short-term costs, affecting solar project viability.
• Scaling Up Domestic Production – India must rapidly develop polysilicon, ingot, and wafer capacity under schemes like the PLI (Production-Linked Incentive) to compete globally.
• Balancing Protection & Growth – Policymakers must carefully balance import restrictions and price stability to avoid disruptions in solar deployment.

The big question: Can India’s policies spark an upstream solar revolution, or will high costs slow down progress? With the right mix of tariffs, incentives, and investment in R&D, India has the potential to reduce dependency on Chinese imports and build a strong domestic solar ecosystem.