Indian Solar Firms US-China Tariff War Benefits: Emmvee CEO Insights

Published on April 18, 2025

The ongoing US-China tariff war is creating unprecedented opportunities for Indian solar firms, according to top executives at Bengaluru-based solar panel manufacturer Emmvee Energy. In a recent interview, DV Manjunatha, Founder and Managing Director, and Suhas Donthi, Group CEO, shared insights on how geopolitical tensions are reshaping the global solar landscape and potentially benefiting Indian manufacturers like themselves.

Geopolitical Advantage for Indian Solar Manufacturers

The intensifying trade tensions between the United States and China have created a significant opening for Indian solar firms in the global market. “The US has imposed significant duties on Chinese solar components and even banned imports from certain regions over concerns of forced labor. These policy shifts create new avenues for Indian solar firms to tap into global demand,” explained the Emmvee executives.

This geopolitical realignment comes at a time when India is aggressively building its domestic solar manufacturing capabilities. The US-China tariff war has accelerated this transition, positioning Indian manufacturers as viable alternatives to Chinese suppliers for international buyers, particularly in the United States.

Emmvee’s US Export Trends and Strategy

The impact of the US-China tariff war on Indian solar firms is already evident in Emmvee’s export numbers. “In 2023, exports to the US accounted for about 18–20 percent of our revenue,” revealed Suhas Donthi. This significant export share demonstrates how Indian manufacturers are capitalizing on the shifting trade dynamics between the US and China.

However, Donthi also noted a strategic pivot in their focus: “With India’s own solar installation boom—adding 25 GW in 2024 alone, we have redirected our focus to serve the domestic market. As a result, our current exports are comparatively lower.” This dual strategy of maintaining export capabilities while serving the booming domestic market illustrates the flexible approach Indian solar firms are adopting in response to global market shifts.

The consideration of establishing manufacturing facilities in the United States represents another dimension of how Indian solar firms are responding to the US-China tariff war. By potentially manufacturing directly in the US market, companies like Emmvee could further capitalize on the trade barriers facing Chinese competitors while eliminating shipping costs and import duties on their own products.

Supply Chain Localization Benefits

One of the most significant developments for Indian solar firms amid the US-China tariff war has been the rapid localization of the supply chain. Traditionally, Indian manufacturers have heavily relied on Chinese imports for raw materials and components. However, this dependency has drastically reduced in recent years.

“Apart from wafers and polysilicon, most raw materials are now available domestically. Our import dependency has dropped drastically,” Suhas Donthi explained. “Earlier, 90 percent of modules were imported from China; now, that figure has come down to zero. We’ve transitioned toward self-reliance and have built a localized supply chain to mitigate geopolitical risks.”

This supply chain transformation represents a fundamental shift in how Indian solar firms operate. By reducing dependency on Chinese suppliers, companies like Emmvee not only insulate themselves from the direct impacts of the US-China tariff war but also position themselves as more attractive partners for international buyers seeking to diversify their own supply chains away from China.

Policy Protection Against Chinese Dumping

The Indian government has implemented robust protective measures that shield domestic manufacturers from potential dumping of Chinese solar products. These policies complement the global dynamics created by the US-China tariff war, creating a more supportive environment for Indian solar firms.

“As for dumping, the Government of India has taken strong steps. A 40 percent Basic Customs Duty (BCD) has been imposed on imported modules,” explained DV Manjunatha. “Additionally, the ALMM (Approved List of Models and Manufacturers) and BIS (Bureau of Indian Standards) certifications are mandatory for any product that connects to the grid. Since ALMM approval is limited to Indian manufacturers, this has created a significant barrier for Chinese players.”

Key policy measures implemented by the Indian government that protect domestic solar manufacturers and complement the advantages created by the US-China tariff war. (Image: Representative)

These protective policies create a dual advantage for Indian solar firms in the context of the US-China tariff war. Domestically, they ensure a robust market for Indian-made solar products, while internationally, particularly in the US market, the trade restrictions on Chinese products create export opportunities that Indian manufacturers can exploit.

International Operations and Market Shifts

The experience of Indian solar firms in international markets extends beyond the current US-China tariff war. Emmvee has a long history of international operations, particularly in European markets, which provides valuable context for understanding their current strategic positioning.

This comparison between European and US markets illustrates how Indian solar firms like Emmvee are adeptly navigating different international market dynamics. While the European strategy has shifted from equipment sales to power generation, the US market is increasingly open to Indian solar panel exports specifically because of the US-China tariff war.

Major Expansion Plans and Future Outlook

Buoyed by both domestic growth and the opportunities created by the US-China tariff war, Indian solar firms like Emmvee are making significant investments in expanding their manufacturing capabilities. The company recently announced a massive ₹15,000 crore investment plan in Karnataka, signaling confidence in the long-term prospects of the solar manufacturing sector.

This ambitious expansion plan, coupled with the projected revenue growth, demonstrates how Indian solar firms are leveraging the current favorable market conditions—including the opportunities presented by the US-China tariff war—to scale their operations significantly. The phased approach to the ₹15,000 crore investment indicates a strategic, long-term perspective that accounts for both immediate opportunities and sustainable growth.

As global solar trade dynamics continue to evolve, particularly in the context of the US-China tariff war, Indian solar firms like Emmvee are well-positioned to capitalize on the shifting landscape. With robust domestic policy support, increasingly localized supply chains, and strategic approaches to international markets, Indian manufacturers are transforming challenges into opportunities for substantial growth and global market expansion.

Published on April 18, 2025 | Updated on April 18, 2025