New Delhi: According to a new report, India’s exports of solar photovoltaic (PV) products in the fiscal year (FY) 2024 increased 23 times to $2 billion from FY22. As per the report by the JMK Research & Analytics, and Institute for Energy Economics and Financial Analysis (IEEFA), this shows rapid progress in India’s transition from being a net importer of solar products to a net exporter.
How did the exports increase?
The report states that there are many factors which led to exports increase. Among them is the factor that India is now being considered by other countries as a good option for their strategy of “China Plus One”. Moreover, the domestic manufacturers of PV are eager to sell their products abroad at increased prices. When it comes to markets, the US has become an important market for India’s exports of solar PV. In both FY2023 and FY2024, over 97 per cent of solar PV exports of India were to the US.
According to Vibhuti Garg, Director of South Asia, IEEFA who is a contributing author to the report, the focus on the market of the United States can be beneficial for the PV manufacturing sector in India. For the manufacturers, it will enhance the quality of their products and competitiveness. She also said that the PV manufacturers in India should aim upstream backward integration which will help the country to maintain its present markets while at the same time foray into untapped marked like Africa, Europe, and Latin America among others.
The need to balance the needs
The report focused on the fact that Indian PV manufacturers must balance the needs of an export market that is growing with availability in the domestic market. According to Jyoti Gulia, the Founder of JMK Research, if there is a shortage in domestic supply, some segments of renewable energy will be affected. Developers will face difficulty and the solar module prices will be affected by the supply-demand gap.
The production in coming years
According to the estimate of the report, the solar PV manufacturers’ annual module production will probably be 28 gigawatts (GW) and 35GW in FY2025 and FY2026. The report also said if India adopts a multi-pronged export-oriented approach while balancing domestic demand, it would be beneficial for the country’s climate goals.
As per the report by the JMK Research & Analytics and the Institute for Energy Economics and Financial Analysis (IEEFA), this shows rapid progress in India’s transition from being a net importer of solar products to a net exporter. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
