India's Solar Sector at a Crucial Crossroads
A report by Yes Securities highlights the rapid growth and challenges facing India's solar sector, with nearly 100 GW in module capacity. However, the market faces risks such as a demand mismatch, dependency on China, and external trade regulations that could hinder sustained growth.
- Country:
- India
As India's solar sector experiences rapid expansion, a report by Yes Securities signals an industry at a critical juncture. While module and cell capacities have aggressively scaled to nearly 100 GW and over 25 GW respectively, the sector's future hinges on policy decisions, demand signals, and agility in navigating global trade flows.
Despite robust growth spurred by government incentives like the Production Linked Incentive (PLI) scheme, analysts underscore that potential demand and off-take mismatches could pose risks. The report emphasizes, "The sector now sits at an inflection point where policy, input markets, demand signals, trade flows, and technology shifts will determine which players survive and who gets squeezed."
Projections indicate that India's module capacity could reach up to 170 GW by 2028, yet concerns loom over oversupply and its impact on utilization levels and profit margins. Dependency remains a critical issue, as India imports over 80% of key solar manufacturing inputs from China, exposing the market to geopolitical uncertainties and fluctuating prices.
(With inputs from agencies.)
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