India's New Policy: $386B Investment in Solar Power, Calls for Chinese Investment

**$386 Billion: India Invests Heavily in Solar Energy**

Recently, at a renewable energy investment conference, India's Minister of Renewable Energy, Prahlad Joshi, announced a substantial investment of $386 billion to develop renewable energy sources, aiming to achieve a target of producing 500 gigawatts (GW) of renewable energy by 2030.

However, while the口号喊得响, it is ultimately the financial resources that will determine the success of this ambitious plan. The $386 billion investment is a strategic national commitment, and its success or failure will have significant implications for India's future.

**Bold Move, "Solar Ambition"**

In May of this year, a heatwave swept across India, with temperatures in many regions consistently exceeding 45°C for several days. The capital, New Delhi, even recorded a peak temperature of 52.9°C, setting a historical record.

Temperatures in the 50s are already an extreme survival challenge, akin to hellish conditions. The more pressing issue is India's electricity shortage, which has left many households unable to even operate fans.Thus, there was confusion at the time:

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Given that India has such excellent lighting conditions, why not use photovoltaic power generation to solve the electricity shortage problem?

India has set a goal that by 2030, renewable energy generation should reach 500GW.

500GW, what is the concept?

In the first seven months of this year, India has added 16.4GW of renewable energy, setting the highest level since 2015.

But even so, if India wants to achieve the goal of 500GW, it will need to add an average of about 50GW of renewable energy each year in the future, which is obviously a lot of pressure.

But although the road is difficult, the "photovoltaic ambition" of the three brothers is hard to wear away.

The reason is very simple, India's "electricity shortage" is too serious. India now burns about 1 billion tons of coal for power generation every year. Not only is the pollution serious, but the electricity is also completely insufficient.

And if India can really achieve the goal of 500GW, it would be equivalent to increasing the power generation of 3.4 billion tons of coal per year, and the electricity shortage problem will be greatly alleviated.This is also why, even when the pocket is extremely tight, Third Brother still has to take out $386 billion to invest in photovoltaics, because photovoltaic power generation is too important for India, and it cannot be lost.

Without China, it can't be done.

In the first quarter of this year, India's photovoltaic installation capacity increased by as much as 10GW, with a year-on-year growth of over 400%, which is a terrifying growth rate.

With an additional 10GW in a single quarter, India has already become the third in the world, following China and the United States.

At first glance, photovoltaics seem to be doing well. Although it can't be compared with China for the time being, the growth rate is quite considerable, and it is already quite powerful.

But what about the reality?

Although India's photovoltaic power generation is growing rapidly, another serious problem has also arisen at the same time:

India's dependence on China's photovoltaic industry is greatly increasing. It can even be said that almost all of India's photovoltaic equipment is imported from China, and then assembled in India.

According to official Indian data, from 2021 to 2022, India has introduced about $3 billion worth of photovoltaic panels in two years, of which 92% came from China.In the first half of this year, China exported $1.19 billion worth of photovoltaic (PV) modules to India, marking a year-on-year increase of 141.5%. Concurrently, Chinese companies like Jinko Energy, Longi Green Energy, and Trina Solar have dominated the top three positions in the Indian PV module market share, making it seem as if the Indian solar market is virtually a Chinese solar enterprise's domain.

Of course, ambition has always been substantial; they do not wish to rely on others, hence their attempts to restrict the import of Chinese PV modules through trade policies to support the development of their domestic PV industry. However, based on the current situation, it appears that Indian domestic companies are not living up to expectations. Despite policy support, they are still at a disadvantage in competition with Chinese PV enterprises.

Where does the money come from? India calls out to Chinese companies.

Speaking of which, there is a crucial question: where does India's money come from? Everyone can make slogans, but can India really come up with $386 billion?

After years of development, the price of PV modules has indeed dropped significantly, but this is relative. If India wants to add 50GW of solar power annually, whether it's manufacturing modules or building factories, they need to import a large amount of equipment and components.

However, India is currently very short of US dollars. India's foreign exchange reserves are only over $600 billion, but it has an annual trade deficit of more than $200 billion. At this rate, it will be depleted in just over two years, and there is even a risk of bankruptcy.How to address the 386 billion, then? Indian officials say it mainly relies on loans, and they have already received commitments from some international banks.

However, it's impossible to rely solely on loans for such a large amount of money; they must invest a portion themselves.

In recent months, India has started frequently calling on Chinese companies to invest in India.

For example, they have leaked rumors, preparing to revise previous rules, and relax some investment permits for Chinese companies. Indian Foreign Minister Subrahmanyam also broke with convention and clearly stated the intention to maintain good relations with China and protect common interests.

In addition, the Indian Ministry of Finance also released an annual economic survey report, stating that India's manufacturing industry has only two paths: one is to attract more investments from Chinese companies, and the other is to directly integrate into China's industrial chain.