India’s solar-cell imports nearly doubled despite capacity growth

India’s solar-cell imports nearly doubled despite capacity growth because imports rose from Rs 13,910 crore in FY 2025 to a record Rs 27,130 crore in FY 2026, while 27 GW of domestic solar-cell capacity was enlisted under the Approved List of Models and Manufacturers, or ALMM, List-II by March 2026. China supplied 61% of imported cells.

Why did India’s solar-cell imports nearly double in FY 2026?

India’s solar-cell imports nearly doubled in FY 2026 as import value increased 95% from Rs 13,910 crore in FY 2025 to Rs 27,130 crore, following a previous decline from Rs 15,330 crore in FY 2024. Solar cells are semiconductor devices that convert sunlight into electricity and are assembled into photovoltaic, or PV, modules. The FY 2026 increase shows that cell demand continued to exceed the supply available from domestic manufacturing.

Import volumes rose at the same time, reaching 8,009.2 million units in FY 2026, compared with 5,061.5 million units in FY 2025. That was an increase of 2,947.7 million units, or about 58%, after volumes had already expanded from 1,233.8 million units in FY 2023. The sharper rise in import value than volume between FY 2025 and FY 2026 coincided with a record level of cell purchases from overseas suppliers.

How large was the FY 2026 solar-cell trade gap?

India’s solar-cell trade gap reached Rs 26,950 crore in FY 2026 because imports were valued at Rs 27,130 crore while exports totalled only Rs 180 crore. Export value fell from Rs 270 crore in FY 2025 and Rs 450 crore in FY 2024, even as imported-cell spending reached its highest level in the FY 2023 to FY 2026 comparison.

The volume comparison was similarly uneven. India imported 8,009.2 million cells but exported 45.7 million units in FY 2026, leaving imports about 175 times export volume. Export volume recovered from 38.9 million units in FY 2025, but it remained a small share of imports; exports represented about 0.6% of the imported-cell volume during FY 2026.

This imbalance is specific to cells and differs from the position in PV modules, the finished panels that contain solar cells. PV module exports were Rs 9,120 crore in FY 2026, marginally above Rs 8,840 crore of imports, creating a Rs 280 crore surplus. The contrast indicates that a broadly balanced module trade position did not remove dependence on imported cells, an earlier and more specialised stage of the PV manufacturing chain.

How much domestic manufacturing capacity had India built?

India’s domestic solar manufacturing capacity expanded materially by March 2026, but capacity growth had not yet replaced imported-cell demand in FY 2026. Solar PV module manufacturing capacity reached about 72 GW as of 31 March 2026, while 27 GW of solar-cell manufacturing capacity was enlisted under ALMM List-II. ALMM is a government framework that specifies approved solar PV models and manufacturers for eligible projects.

The government made the ALMM framework for solar PV cells applicable from 1 June 2026. This means the rule began after the FY 2026 period in which imports reached Rs 27,130 crore, so the reported import data do not establish the effect of the cell-specific requirement. The framework is also being extended to ingots and wafers, which are upstream inputs in solar-cell production, with implementation scheduled from 1 June 2028.

The Production-Linked Incentive, or PLI, scheme adds another capacity-building mechanism. In Tranche-II, 11 selected manufacturers were awarded 39.6 GW of fully or partially integrated manufacturing capacity during FY 2026. The scheme’s total outlay is Rs 24,000 crore, including Rs 19,500 crore for Tranche-II, and is designed to support high-efficiency solar PV module manufacturing and a more integrated domestic supply chain.

How concentrated was India’s solar-cell import supply?

India’s solar-cell import supply remained concentrated in China, which accounted for 61% of FY 2026 imports. Indonesia supplied 15%, Thailand 9% and Ethiopia 7%, while all other countries combined represented 8%. China and Indonesia together therefore provided 76% of India’s imported solar cells during the year.

This supplier pattern means that lower imports would require not just additional Indian cell capacity, but production that can meet the cells required by domestic projects. The source identifies the gap between domestic demand and local cell-manufacturing capacity as the key reason for continuing imports. The persistence of a 61% Chinese share also means that a change in China-linked supply remains particularly relevant to India’s imported-cell availability.

Export destinations were also concentrated, although exports were much smaller than imports. The United States received 47% of India’s FY 2026 solar-cell exports and the United Arab Emirates received 41%, giving the two markets an 88% combined share. China accounted for 9% of exports, leaving 3% for all other markets.

What does rising solar deployment mean for cell demand?

India’s solar deployment created a large underlying market for cells during FY 2026. Installed solar power capacity rose from 105.6 GW in FY 2025 to 150.3 GW in FY 2026, according to the fiscal-year capacity series. That 44.7 GW increase was the largest annual addition in the FY 2020 to FY 2026 table, where capacity had begun at 35.6 GW.

The source also reports installed solar capacity of 164.59 GW as of July 2026, a later point than FY 2026. Ground-mounted plants accounted for 122.57 GW, grid-connected rooftop systems for 30.74 GW, solar components of hybrid projects for 4.77 GW and off-grid installations for 1.51 GW. These segments require PV equipment, and their expansion helps explain why demand for cells remained high while manufacturing capacity was being built.

Policy objectives also point to continuing deployment requirements. India pledged at COP26 to achieve 500 GW of non-fossil-fuel-based capacity by 2030, while the PLI scheme aims to build 65 GW of annual solar-manufacturing capacity. Whether import dependence declines will depend on commissioned domestic cell output, upstream integration into ingots and wafers, and the operation of the ALMM cell requirement, rather than capacity announcements alone.

Conclusion

India’s solar-cell imports nearly doubled despite capacity growth because FY 2026 demand for cells was met predominantly through overseas purchases: Rs 27,130 crore of imports and 8,009.2 million units compared with Rs 180 crore of exports and 45.7 million units. Domestic manufacturing expanded to 27 GW of ALMM-enlisted cell capacity and 72 GW of module capacity, but those reported capacity levels did not eliminate the cell trade gap during the year.

The next measures to watch are the ALMM cell framework, applicable from 1 June 2026, and the scheduled inclusion of ingots and wafers from 1 June 2028. The 39.6 GW of Tranche-II PLI awards to 11 manufacturers provides a disclosed route toward more integrated production, while China’s 61% share of FY 2026 cell imports remains the clearest measure of overseas supply dependence.