Welcome to an insightful conversation with Priya Jaiswal, a renowned expert in banking, business, and finance, whose deep understanding of market dynamics and international trends offers a unique perspective on India’s burgeoning solar industry. With India striving to carve out a significant space in the global clean energy market amidst challenges like U.S. tariffs and China’s dominance, Priya brings clarity to how domestic demand, government policies, and manufacturing growth are shaping the sector. In this interview, we explore India’s progress in solar component production, the impact of international trade policies, the role of domestic energy needs, and the personal stories of those driving this transformation.
How would you describe the current landscape of India’s solar industry, especially when compared to China’s overwhelming presence in the global market?
I think India’s solar industry is at a pivotal moment. Over the past few years, we’ve seen remarkable growth in manufacturing capacity—solar module production doubled to 74 gigawatts in the last fiscal year, and solar cell manufacturing tripled to 25 gigawatts. That’s a huge leap, but we’re still far from challenging China, which controls over 80% of the world’s solar component supply. India is heavily reliant on Chinese raw materials like polysilicon, and building the infrastructure to mine and process these domestically is a slow process. The gap is narrowing, but it’s a steep climb, and supply chain bottlenecks remain a significant hurdle.
What are some of the key obstacles India faces in trying to reduce its dependence on Chinese solar components?
The biggest obstacle is the lack of a robust domestic supply chain for raw materials. India imported $1.3 billion worth of solar cells and modules from China in just the first quarter of this year, though that’s down by a third from last year. We don’t yet have the capacity to produce critical materials at scale, and developing the mining and processing infrastructure takes time and massive investment. Additionally, there’s a technology gap—China has refined its manufacturing processes over decades, while India is still catching up. Government initiatives are helping, but it’s a long-term effort, and the next few years will be crucial.
Can you shed light on how facilities like the ReNew solar panel plant in Jaipur are contributing to India’s clean energy ambitions?
The ReNew plant is a fantastic example of India’s push toward self-reliance in clean energy. Located in a government-subsidized zone near Jaipur, it produces enough modules for 4 gigawatts of power annually, which can energize about 2.5 million homes. That’s a significant contribution to India’s renewable energy targets, especially with nearly 170 gigawatts of projects in the pipeline. Beyond numbers, it’s also a symbol of momentum—showing that India can scale up production with the right support and infrastructure.
What kind of economic and social impact has the ReNew facility had on the local community?
Economically, it’s been a game-changer for the region. The plant employs nearly 1,000 people, creating stable jobs in an area traditionally known for tourism and small-scale trade. These jobs have a ripple effect—bringing income to families and boosting local businesses. Socially, it’s empowering individuals, especially women, by offering opportunities in technical roles. Stories of employees gaining independence through their work highlight how the solar industry is not just about energy but also about transforming lives.
Speaking of personal stories, how has working in the solar sector impacted individuals like engineers at ReNew?
Take the example of engineers who’ve joined this industry—they often describe a profound sense of purpose. Beyond the paycheck, there’s pride in contributing to a cleaner future. For many, especially women, these roles offer financial independence, allowing them to support their families in meaningful ways. It’s not just a job; it’s a chance to break barriers and build a better life, which adds a deeply human dimension to the industry’s growth.
Shifting gears to international trade, how are the recent U.S. tariffs affecting India’s solar exports?
The 50% tariffs imposed by the U.S. last month are a significant blow, especially since about a third of India’s solar panels were sold to the U.S. in recent years. These tariffs, introduced under the Trump administration, make Indian products less competitive in a lucrative market. While the full impact won’t be felt for another year due to pre-existing orders, there’s concern about a slowdown in exports. Indian manufacturers are now facing the challenge of finding alternative markets or absorbing the cost, which could squeeze profit margins.
How is India’s domestic demand for solar power helping the industry weather these external pressures?
Domestic demand is proving to be a lifesaver. India’s ambitious clean energy target of 500 gigawatts by 2030, coupled with the fact that solar power is now half the cost of new coal plants, has created a massive internal market. Companies that once focused heavily on exports are pivoting to local customers. For instance, since the COVID-19 pandemic, some manufacturers have flipped their business models from 90% exports to 90% domestic sales. This shift cushions the blow from U.S. tariffs and keeps the industry growing.
What role are government policies playing in supporting the growth of India’s solar sector?
Government policies have been instrumental. Tax breaks and subsidized industrial zones, like the one hosting ReNew, lower the cost of setting up and scaling operations. Restrictions on imports of solar components and incentives for local manufacturing send a clear signal to companies to produce domestically. Mandates requiring solar producers to source materials from approved local suppliers further boost the industry. These measures create a supportive ecosystem, though sustained policy momentum is critical for long-term success.
Looking ahead, what is your forecast for the future of India’s solar industry in the face of global competition and trade challenges?
I’m cautiously optimistic. By 2030, India could significantly reduce its reliance on imported raw materials, potentially needing only polysilicon from abroad while producing other components domestically. The domestic market will likely continue to absorb production, buffering against trade disruptions like tariffs. However, competing with China will require not just capacity but innovation and efficiency. If government support and private investment align, India could emerge as a serious player in the global solar market, but it’s going to be a marathon, not a sprint.
