According to solar industry players, the announcement of the India-US trade agreement will increase exports of Indian-made solar cells and modules to the US market and also strengthen India’s position as a reliable energy exporter and technology partner of the world’s largest economy.

The seven percentage point reduction in tariffs significantly improves the cost competitiveness of solar cells and modules made in India. This improvement will make projects more profitable for US developers and create substantial new demand for high-efficiency manufactured-in-India products in the coming years.

Prashant Mathur, managing director of Saatvik Green Energy, says the reduction in US tariffs on Indian goods from 25% to 18%, along with the removal of the additional punitive tax, represents a strategic inflection point for the solar sector, rather than a routine policy change.

“India’s solar exports, which include solar cells and solar modules, have already reached billions of dollars, making the United States our largest foreign market. This change also strengthens the case for open and reliable supply chains. It alleviates long-standing concerns about Chinese producers evading tariffs and positions India as a credible and reliable alternative manufacturing base that aligns with trade goals.” Americans,” he said.

For companies like Saatvik, this transforms the US market from high-risk to one full of opportunity, emphasizing the need to accelerate investments, upgrade technology and establish long-term, profitable partnerships with US companies and developers, he added.

A large number of Indian manufacturers in the solar and energy equipment sector have been eyeing the US market for exports. The increase in the tariff imposed in August 2025 was a setback to increase its exports.
Gyanesh Chaudhary, CMD, Vikram Solar, said the trade agreement represents a structural inflection point for India’s energy industry, particularly on the export side.

“India’s energy and clean technology exports to the US have always played a critical role for the industry and this agreement significantly enhances our global competitiveness by improving pricing efficiency, access certainty and long-term demand visibility,” he said.

For Indian manufacturers and solution providers of solar, energy equipment, advanced materials and energy infrastructure, Chaudhary said this creates a powerful runway to scale exports, deepen value addition and integrate more meaningfully into global supply chains.

“I have long believed that a more mature and mutually beneficial trade framework with the United States would yield positive results for India’s energy ecosystem, and this development reaffirms that belief. It strengthens India’s position not only as an energy consumer, but as a reliable energy exporter and technology partner to the world’s largest economy,” he added.