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By Julianne Geiger of OilPrice.com,
India's solar sector has hit that awkward stage of adolescence where ambition seems to be outpacing demand. And now the adults in the room are issuing critical warnings.
A new letter from the clean-energy ministry, quietly circulated to the finance ministry, urges lenders to think twice before showering cash on yet another wave of standalone module factories. When a government that spent the last three years cheerleading capacity expansion suddenly says "maybe don't," you can assume the oversupply problem is no longer a theory.
The timing isn't great for India's manufacturers. They bulked up with a clear target in mind: the U.S. market. But U.S. tariff walls went up, as did customs scrutiny over Chinese components. This has turned Indian shipments into a slow-moving regulatory piƱata. Exports faded. Domestic installations couldn't pick up the slack. And now the ministry is speaking the painful truth that module capacity could climb to 200 GW in the next few years, and cell capacity could climb to 100 GW.