New trade measures by the United States are causing major disruption for India’s solar industry, reducing export opportunities and putting pressure on local manufacturers. According to Reuters, India’s solar module exports fell sharply from around $134 million in August to about $80 million in September. The drop comes after the US imposed higher import duties and increased scrutiny of supply chains, concerned that Chinese components might be entering through India. The US had become India’s top export market after American companies avoided Chinese solar products due to earlier trade restrictions. The sudden fall in exports is creating challenges at home as manufacturers redirect products to the domestic market, risking oversupply and lower profits. Smaller producers may struggle to survive in this tight market, and some companies could face financial difficulties if conditions do not improve. Industry groups have already warned banks to be cautious about funding new solar projects. With global demand shifting and tariffs remaining high, India’s solar sector is entering a period of adjustment that may test the resilience of smaller and newer manufacturers.
