Solar Cells Import In India, China Accounts For The Highest Share

10 June 2022

Imports to India for solar modules (or cells) are on an upward trend for 2021. The value of solar imports in India for 2020 was far less than what it imported in the following years. Among all the importing countries for the imports of solar cells, China stands at the top position as the solar cell importing country for India.

India manufactures solar panels domestically, but it is still lagging behind in the manufacturing of solar modules. Solar panels are made from a combination of solar modules which are made from the collected solar cells. Due to the intensive task of creating solar cells in its own country, the imported solar cells are high and showing growing values.

India Solar Cell Imports Trend

India solar cells imported from other countries amounted to a total import value of $4.19 billion in 2021. The imports in February grew a little higher than January imports, followed by a growth of 105.52% at $230.49 million. With a steep decline in April, May and June have growing values. With minor fluctuations throughout the year till October, the next following month of November accounted for a growth of 1.95%. In November, the total value of imports amounted to $586 million, which is also the highest accounted value in 2021. Values declined from December.

The growth chart shown below shows the imports' growth in the percentage of each quarter for 2021. While the second quarter recorded a decline in the growth of the imports of solar cells in India, the fourth and final quarter accounted for the highest growth in all of 2021 with a percentage of 78.72% as calculated.

India Solar Cell Imports – By Countries

The top importing countries for the imports of solar cells in India are featured below. The top importing countries are China with an import value of $3.9 billion, followed by Malaysia with $79.1 million. China has the highest value among all the countries. The difference between China and Malaysia is $3.87 billion, standing at a percentage of 98%.

India Solar Cell Imports From China – Comparison

It is proved that China is the highest importing country in India’s solar imports from other countries. The values are far more than any other country, which shows a heavy reliance on Chinese exports for India. How much India is reliant on imports of solar cells from China? See the comparison table below, showing on a yearly basis.

In comparison to three years—2020, 2021, and 2022, the highest values of imports accounted for 2021 at $995 million. As compared to 2020, the growth accounted for 181.1% in 2021 with a minor decline in the year 2022, standing at 16.02%.

The above values show that imports in 2022 are still growing. While India manufactures the solar panels in its own country, it seems it still relies on the heavy imports of solar cells from other countries, most specifically from the neighbouring country—China. To increase the manufacturing of its own solar panels, India needs to shed down its reliance on imports.

India has imposed a customs duty of 25% on the imports of solar cells and 40% on the imports of whole solar panels. The levied import tax has been implemented to boost the local manufacturing of solar panels and encourage domestic manufacturers to develop methods to boost the local production more efficiently.