India’s ambition to meet its 2030 renewable energy targets could result in a significant surge in solar equipment imports, potentially reaching $30 billion per year, according to a report by the Global Trade Research Initiative (GTRI). As India ramps up its efforts to expand solar energy capacity, the country may become heavily reliant on imported solar panels, cells, and related components to meet the growing demand for renewable energy infrastructure.
The report highlights that while India aims to become a global leader in renewable energy, domestic production of solar equipment has not kept pace with its ambitious targets. The increasing need to meet energy demand through green alternatives, coupled with rising investments in solar power projects, is expected to drive up imports of solar technology from countries such as China, Vietnam, and Malaysia, where production costs are lower.
India’s government has set a target of achieving 450 GW of renewable energy capacity by 2030, with solar power expected to play a crucial role. However, the domestic solar manufacturing industry currently lacks the scale and capacity required to meet the country’s growing energy needs, leading to a reliance on imports. This situation could present challenges for India’s goal of self-reliance in the renewable energy sector.
The increase in solar imports also raises concerns about trade imbalances and the potential impact on India's local manufacturing ecosystem. Policymakers may need to implement supportive measures, such as incentivizing local manufacturing and improving supply chain efficiency, to reduce the dependence on imports and foster the growth of the domestic solar industry.
As India continues its journey toward meeting its renewable energy goals, the balance between expanding solar capacity and fostering homegrown solar manufacturing will be key to ensuring sustainable and long-term energy security. The projected $30 billion annual import figure underscores the urgency of addressing this challenge while accelerating the transition to clean energy sources.
