Documente Academic
Documente Profesional
Documente Cultură
Why India needs to build Solar Capabilities are built to compete effec-
Manufacturing Capacity tively in competitive global markets
Indias energy imports have risen sharply
Solar manufacturing Strong ancillary industry is created
from USD 43 bn. in 2005-06 to USD 167 can also create direct Clusters for knowledge and infrastruc-
bn. in 2013-14. In comparison Indias trade employment of more ture sharing are developed
deficit in 2013-14 was USD 139 bn (table 1). Research institutions develop industry
Solar power is a strategic need for the than 50,000 in the next linkages and support innovation
country as solar power can potentially save 5 years assuming local
USD 20 billion in fossil fuel imports annu- Global Solar Manufacturing
ally by 2030 and domestic manufacturing
manufacturing captures Scenario
can save USD 42 billion in equipment im- 50% domestic market Globally, there are examples of countries pro-
ports by 2030. share and 10% global viding strategic support to solar energy also
In the absence of manufacturing, India supporting solar manufacturing (table 2).
will need to import USD 42 bn. of solar
market share China has developed solar champions
equipment by 2030 corresponding to 100 in a systematic manner through massive
GW of installed capacity. subsidies, low interest loans, grants and
Solar manufacturing can also create di- easy access to land and utilities
rect employment of more than 50,000 supply to Japan or supply of gas by Globally, manufacturing bases are be-
in the next 5 years assuming local manu- Russia to European nations) ing planned as integrated solar indus-
facturing captures 50% domestic market trial clusters with strong Government
share and 10% global market share. An- Why it is necessary for India to support a support (table 3).
other at least 125,000 indirect jobs will be strategic industry [Solar] at early state of
created in the supply chain the life cycle? Indian Solar Manufacturing
India may not be able to utilize its large Economies of scale results in lower cost Industry
solar energy resources, if imports of solar and brand building Indias Manufacturing Policy recognizes
panels get impacted due to Skilled manpower gets developed with solar manufacturing as an industry with
Major exporters using their production passage of time strategic importance. However, the policy
for their domestic use. Overall strategy for innovation and ex- is yet to have the intended effect:
Sudden jump in prices in the future ports are developed at an early stage 40% of the Indian solar cell manufac-
due to supply shortages (e.g.. Polysili- Appreciation of industry and competi- turers have shut down with industry
con price jump in 2008) tive dynamics utilization at only 21%
Dispute with major suppliers (as evi- Large domestic market helps in ex- The industry has suffered due to sud-
denced in case of Chinas rare earth panding capacity den and sharp price declines due to
TABLE 1
In billion USD 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Coal 3 4 5 9 8 9 17 16 15
Crude Oil 39 48 68 77 80 100 140 144 143
LNG 1 1 2 3 2 3 7 8 9
TABLE 3
Low interest Loans Preferential
Support in Subsidized R&D Tax Anti-Dumping
Country and Capital Subsidies Domestic
Acquiring Land Utilities Support Breaks Duties
Guarantees Procurement
China Yes Yes Yes Yes Yes Yes Yes Yes
USA Yes Yes Yes - Yes Yes Yes Yes
Taiwan Yes Yes Yes Yes Yes Yes - -
Malaysia Yes Yes Yes Yes - -
Yes; but not
disbursed to any
India - - - - - - Yes
manufacturer till
date