India-West News Desk
NEW DELHI – Tariffs imposed by the United States have brought turmoil to ndia’s solar industry, squeezing export opportunities and adding pressure on domestic manufacturers, according to Reuters. The stricter trade measures have contributed to a sharp contraction in India’s solar module exports, which fell to their lowest level this year in September.
Exports dropped from roughly $134 million dollars in August to about $80 million the following month, driven largely by tighter US scrutiny of supply chains and higher import duties. The US had emerged as India’s biggest external market as American developers shifted away from Chinese products restricted under earlier trade actions. But Washington has since broadened its curbs, including a 50 percent tariff on Indian solar goods and a continuing investigation into whether Chinese components are being routed through India, Reuters reported.
The steep fall in demand has raised alarms over possible oversupply in India’s domestic market. Manufacturers who had expanded capacity to meet US demand are now redirecting modules back home, potentially straining margins and intensifying competition.
Industry analysts expect consolidation as smaller, module-only producers struggle to stay profitable in the tightening environment. Several firms could face financial stress if export constraints persist and prices continue to soften.
Anticipating deeper market challenges, the All-India Solar Industries Association in August urged the Indian Banks’ Association to stop financing new manufacturing projects that may prove unviable.
With tariffs biting and global market conditions shifting, India’s solar manufacturing sector faces a period of correction that may test the resilience of younger and smaller companies even as policymakers push for capacity growth.