India’s Solar Ambitions Face Hurdles Amid Heavy Reliance on Chinese Imports and Domestic Manufacturing Challenges
(Source: Indian Express; Section: Economy; Page: 13)
| Topic: GS3 – Indian Economy |
| Context: |
|
Analysis of News:
Dependence on Chinese Imports
- India’s solar manufacturing is still in its early stages, heavily dependent on imports, particularly from China, which dominates global solar manufacturing.
- In 2023-24, India imported $7 billion worth of solar equipment, with China accounting for 62.6% of this total.
- China controls 97% of the world’s polysilicon production and 80% of solar modules, creating a significant challenge for India in developing a self-sufficient solar manufacturing ecosystem.
Domestic Manufacturing and Challenges
- India has implemented policies like the Production Linked Incentive (PLI) scheme to boost domestic manufacturing, but progress has been limited.
- Currently, 90% of India’s solar manufacturing involves assembling imported modules, with only 15% local value addition.
- India lacks domestic production of key components like polysilicon, solar cells, and aluminum frames.
Need for Self-Reliance in Solar Manufacturing
- To reduce its dependence on imports, India needs to invest in upstream solar production, starting with silica refining and polysilicon production.
- Developing domestic capacity for essential materials like aluminum frames and glass will also require government support and research and development efforts.
Global Context and Recommendations
- China remains the global leader in solar equipment manufacturing, exporting $39.5 billion worth of solar modules in 2023.
- To compete, GTRI recommends that India expand the PLI scheme, invest in skilled labor, and collaborate with countries like the US, EU, and Japan to establish large-scale manufacturing facilities.
- Reducing dependency on China is critical for India to meet its renewable energy goals while ensuring sustainable growth in the solar sector.
| What Steps can India Take to Enhance the Viability and Efficiency of Solar Energy? |
|
| PYQ: India has immense potential of solar energy though there are regional variations in its development. Elaborate. (250 words/15m) (UPSC CSE (M) GS-1 2020) |
| Practice Question: Assess the challenges and opportunities which India is facing in achieving its goal of installing 500 GW of renewable energy capacity by 2030, particularly in the solar sector. Discuss the implications of heavy reliance on imports and the need for self-reliance in solar manufacturing. (250 words/15 m) |
