New Delhi: India is set to emerge as the second-largest producer of solar modules by 2025, surpassing Southeast Asia, and is expected to cater mainly to the US demand, a Wood Mackenzie report has stated. This comes at a time when China is predicted to hold more than 80% of the global capacity for the solar module supply chain from 2024.
The report indicates that even as India plans to boost its module exports to the profitable US market, it grapples with high production costs due to a 25% basic customs duty on imported solar cells. There is speculation that to support the export ambitions, the Indian government might lower the duty on Chinese modules, which currently incur a 40% tax.
