India’s solar industry is facing a mounting challenge as U.S. tariffs continue to squeeze global trade. With Washington imposing a 50% tariff on Chinese-made solar modules, Indian manufacturers—many of whom relied heavily on exports to the U.S.—are feeling the ripple effects.
The situation is worsened by a domestic slowdown in solar project bidding, leaving India’s factories underutilized. Current estimates suggest that while the country’s solar module manufacturing capacity stands at 74 GW, it is only being used at about 25% efficiency.
What’s more, production costs are climbing due to rules requiring solar projects to use locally manufactured cells and modules. Although the government expects capacity to grow to 190 GW by 2027, analysts warn that without global market access, much of this expansion could go idle.
📌 Takeaway: India’s ambitious renewable energy goals depend on both domestic policy support and stronger access to international markets.