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Tariff Reduction Lifts Outlook for Indian Solar Manufacturers and Exporters

Leading solar panel manufacturers have said that the recent trade agreement with the United States is expected to strengthen India’s solar exports and improve the sector’s integration with global supply chains.

Under the agreement, US import tariffs on Indian goods will be reduced from 25% to 18%, a move industry participants say will significantly enhance the competitiveness of Indian solar products in the American market. The US has also withdrawn additional 25% penalty tariffs imposed on imports linked to Russian oil purchases.

India is already a key supplier of solar equipment to the US. In the first nine months of 2025, nearly 97% of India’s solar module exports—amounting to about 10.4 GW—were shipped to the US market. The trade agreement comes shortly after the US exited the India-backed International Solar Alliance.

Prashant Mathur, Chief Executive Officer of Saatvik Green Energy, said the tariff reduction would meaningfully improve pricing dynamics for Indian manufacturers. “The seven-percentage-point cut in tariffs materially enhances the cost competitiveness of solar cells and modules produced in India,” he said.

Mathur added that lower import duties would improve project economics for US developers and generate fresh demand for high-efficiency, India-made products over the coming years. “For companies like Saatvik, the agreement changes the US market from a high-risk destination to one offering substantial opportunity,” he said, noting that the shift underscores the need to accelerate investment, upgrade technology, and build long-term partnerships with US utilities and developers.

Saatvik Green Energy is currently setting up its first 2.4 GW solar cell manufacturing facility, which is expected to begin production in October. A second cell plant is slated to become operational about a year later.

Gyanesh Chaudhary, Chairman and Managing Director of Vikram Solar, said the agreement opens up new export growth avenues for Indian clean energy companies. “For manufacturers and solution providers across solar, energy equipment, advanced materials, and power infrastructure, the deal provides a strong platform to scale exports, increase value addition, and integrate more deeply into global supply chains,” he said.