India’s solar imports drops 40% in Q1

According to Trade Promotion Council of India (TPCI), India’s solar imports witnessed a significant year-over-year (YOY) decline in the first quarter (Q1) of 2019. While in Q1, 2018, India imported US$ 1.1 billion worth of solar cells and modules imported; it imported solar modules and cells of approximately $650 million the corresponding period this year. There has also been an increase in the export of solar cells & modules over the same period. India exported solar modules and cells worth US$ 33 million in Q1 2019, a 74% increase, compared to US$ 19 million of exports in the same quarter of the preceding year.

China, Singapore & Vietnam were the top 3 sources of India’s solar imports, respectively. The decline in imports has been attributed to the imposition of 25% safeguard duty by the Indian government on solar imports from China and Malaysia.

According to Mercom, Cumulative Solar Imports To India During Q1/2019 Decline 40% YoY As Chinese Contribution Dropped To 80% From 91.5% Last Year Thanks To Safeguard Duty; Domestic Manufacturers Improve Solar Exports By 74%

China was again the largest exporter of solar modules and cells to India, accounting for approximately $523 million (~₹37 billion) of total solar imports. This was down by 47% compared to $991 million (~₹69 billion) of solar imports to India in Q1 2018. The share of Chinese solar imports declined from 91.5% in Q1 of 2018 to 80.5% in Q1 2019. The decline is primarily due to the imposition of 25% safeguard duty by the Indian government on solar imports from China and Malaysia.

Singapore accounted for 6.7% of India’s imports of solar cells and modules in Q1 2019, totaling $40 million (~₹2.7 billion), making it the second largest solar exporter to India.

Vietnam was the third largest exporter to India, accounting for a 6.1% share, a huge increase from the 0.5% market share recorded in Q1 2018.

Hong Kong and Thailand were the other exporters of solar modules and cells to India in Q1 2019.

Taiwan, which was the second largest exporter of solar to India in Q1 2018, accounted for just 0.28% in Q1 2019. This was a sharp decline of 96% YoY from the 4.4% share of imports in Q1 2018.

Malaysia accounted for 0.25% of India’s total solar imports, a decrease of 88% from the 1.2% share in the same period the previous year. China, with 80.5% market share in Q1 2019, saw a decline of 47% when compared to Q1 2018. Meanwhile, the exports from Thailand, Hong Kong, Vietnam, and Singapore recorded significant growth in Q1 2019 compared to Q1 2018.

In Q1 2019, $21 million (~₹1.47 billion) worth of solar cells and modules were exported from India to Vietnam.

In Q1 2019, the United States accounted for 15.4% of all solar modules and cells exported from India, up by 90% compared to the same period in 2018. Though the export quantity was small, the year-over-year increase was substantial.

However, the U.S administration recently decided to terminate India’s designation as a beneficiary developing country effective June 5, 2019. This will impact manufacturers who were banking on growing exports to the United States.

The UAE accounted for 3.7% of exports, followed closely by South Africa at 3.4%. Belgium and Nigeria accounted for 2.5% and 1.9% respectively.

Source:- TPCI & Mercom