US tariffs pinch margins of Indian solar PV module manufacturers
The International Renewable Energy Agency in its latest report notes that export-oriented manufacturers in India are facing significant hurdles, with the US, a major trading partner that accounted for 97% of the Indian solar PV module export market in 2024, imposing a total of 50% tariff on Indian goods as of August 2025.
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The tariff imposed by the US, which accounted for almost all of India’s solar PV module exports in 2024, is impacting export competitiveness of the domestic export-oriented and evolving manufacturing ecosystem.
In such a scenario, it has become important that Indian solar PV module manufacturers focus on long term export competitiveness with focus on developing high-efficiency technologies, strong ESG and innovation performance, and early alignment with emerging European regulatory and emissions requirements.
The International Renewable Energy Agency (IRENA) in its latest report notes that India is emerging as a major solar PV manufacturing and exporting hub, with domestic solar module manufacturing capacity growing from less than 5 gigawatts (GW) in 2018 to more than 68 GW in 2024.
However, it also points out that export-oriented manufacturers in India are facing significant hurdles, with the US, a major trading partner that accounted for 97 per cent of the Indian solar PV module export market in 2024, imposing a total of 50 per cent tariff on Indian goods as of August 2025.
Prior to this, solar PV exports from India to the US had increased by twenty-three times between 2022 and 2024. Margins on overall exports were 40-60 per cent higher than domestic sales in 2024.
“The latest tariffs may curtail India-US solar PV trade, diminish margins on exports, and even slow the buildout of new factories in India,” it added.
Germany-based EUPD Research emphasises that India’s solar manufacturing surge has delivered scale, and the focus should now be on global competitiveness.
“Identifying the most resilient markets and their stakeholders, and meeting emerging sustainability and quality requirements will be essential for long-term success,” said Markus AW Hoehner, Founder and CEO of EUPD Group.
Long-term competitiveness in India’s solar manufacturing sector will be shaped by advances in high-efficiency technologies, stronger ESG and innovation performance, and early alignment with emerging European regulatory and emissions requirements, EUPD Research stressed.
Manufacturers that precisely target markets, differentiate products and rely on robust data will be best positioned to sustain margins and turn current momentum into long-term global strength, it added.
As competition intensifies, speed, focus and disciplined execution outweigh scale alone. Indian manufacturers must move beyond production volume toward data-driven market understanding, tiering markets, segmenting customers and aligning technology with profitable demand, the sustainable solutions consulting firm explained.
“With the United States historically absorbing the majority of shipments but now constrained by tighter trade measures, manufacturers will need to deepen engagement with Europe, the Middle East and Africa to sustain production levels and diversify market exposure,” it added.
EUPD Research projects that India is expected to install about 213 GWdc of new solar capacity between 2025 and 2029 with annual additions averaging 42 GWdc.
At the same time, module manufacturing capacity could exceed 280 GW by 2030, while cell capacity is projected to rise from 26 GW in 2025 to roughly 171 GW by the end of the decade. This positions India among the largest integrated PV manufacturing bases worldwide.
Published on November 20, 2025
