As the global economic activity slowly comes on track reeling from the effects of the pandemic, the Indian solar industry saw its Q3/2020 imports and exports getting impacted negatively on annual basis. Fearing rising cases of COVID-19, some countries are considering another round of full or semi lockdown which might impact the Indian solar industry as well; however, China, the countries largest import trade partner currently is unaffected from COVID-19. (Source: Mercom India Research)
- Mercom India Research says solar imports into India declined 77% in Q3/2020 compared to last year, with a total value of $598.1 million
- China had the largest market share with 88% of all solar imports into India, increasing its clout from 77% in the previous quarter
- The US was the largest export destination for Indian solar products with 71.8% shipped to the location, out of total exports of
- Indian export activity was also a drop of 30% QoQ and 75% YoY in Q3/2020 with the US as its largest market
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Referring to latest trade data, Mercom India Research says Indian solar import and export activity continued to suffer from the effects of COVID-19 pandemic during Q3/2020 when its imports during the quarter dropped 77%, on annual basis. It added up to $598.1 million.
A sequential comparison though shows the import activity went up 102% to $140.1 million in Q3/2020, mainly due to pandemic related restrictions being eased globally, including in India, Mercom added.
China continued to maintain its lion’s share in the Indian imports accounting for about 88%, growing its share from 77% compared to Q2/2020. Following China was Thailand whose imports dropped from 7.4% to 3.4% during the same period. Taiwan improved its share from 1.3% in the previous quarter to 3% in Q3/2020, whereas Vietnam and Singapore accounted for 2.2% and 1.7% import market share in India in the reporting quarter.
Total Indian solar exports in the 3rd quarter of 2020 dropped about 30% to $16.9 million, as against $24.1 million in Q2/2020 and on YoY basis these were around 75% less than $67.4 million in Q3/2019.
The largest market for Indian solar goods during Q3/2020 was the US taking 71.8% of the total exports in this segment, even though its share declined compared to 89% in the last quarter.
Other major markets for Indian products were Zambia (2.6%), South Africa (2%), the United Kingdom (1.9%) and Vietnam (1.8%). “In the preceding quarter, it exported 0.1%, 2.7%, to Zambia and South Africa, respectively, while the United Kingdom and Vietnam received no shipments,” stated Mercom.
During the period between January 2020 and September 2020, imports went down by 78% to $359.9 million compared to $1.6 billion a year back and exports fell 44% to $76.1 million, down from $135.6 million in 9M/2019 (see Solar Imports To India Declined 22% YoY In 9M/2019).