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					</table>Rising freight costs linked to the West Asia conflict, combined with congestion at Chinese ports, are increasing costs and delaying equipment deliveries for Indian solar manufacturers. The disruptions could affect the installation and commissioning of new production lines.
India&#8217;s solar manufacturing expansion remains dependent on imported production equipment and technical expertise, particularly from China. Port congestion, vessel delays, and restrictions on cargo movement are extending delivery schedules and creating uncertainty for manufacturers establishing new facilities or expanding existing operations.
 Domestic Deliveries Face Delays
According to a solar manufacturer, the ongoing conflict in West Asia has significantly increased logistics and freight charges, while congestion affecting shipments from China to India and other markets has disrupted equipment deliveries.
The manufacturer said vessel delays, port gate restrictions, and the risk of cargo being rolled over to subsequent sailings have complicated the transportation of manufacturing equipment.
“Equipment deliveries that previously took two to three months now take an additional three months, effectively doubling lead times in some cases. These delays are particularly concerning for solar cell manufacturers, which depend on imported production equipment to establish new manufacturing facilities and expand existing capacities,” he added.
“While the core manufacturing equipment for advanced solar PV lines is predominantly sourced from East Asia, global maritime logistics, vessel availability, and critical shipping routes transiting through or impacted by the West Asian corridor have faced severe disruptions. This has resulted in extended transit bottlenecks, container shortages, and fluctuating freight rates, pushing back equipment delivery schedules by an average of 3 to 5 weeks depending on regional port congestion,” noted Nitin Barvaliya, Vice President, <a href="https://pahalsolar.com/" target="_blank" rel="noopener">Pahal Solar</a>.
“Additionally, specialized technical deployments such as bringing foreign OEM engineers and commissioning experts on-site for automated production line setup, calibration, and fine-tuning have experienced cascading procedural delays. Travel rerouting and tighter immigration processing timelines have occasionally compounded these logistical hurdles, he added.
Longer delivery schedules could delay equipment installation, commissioning, and the start of commercial production, particularly for projects with limited flexibility in their implementation timelines.
“We have shifted the commissioning of 2GW module lines to February 2027, and the cell lines to June 2027, due to shipment delays caused by international conflicts and weak market conditions,” noted Barvaliya.
In August, the Ministry of New and Renewable Energy had <a href="https://www.mercomindia.com/mnre-allows-four-month-extension-for-renewable-projects-hit-by-west-asia-crisis" target="_blank" rel="noopener">directed</a> Renewable Energy Implementing Agencies and procuring entities to consider granting force majeure-based extensions of up to four months to eligible projects affected by the West Asia conflict.
However, solar manufacturers face a different challenge. Unlike renewable energy projects that can seek extensions to contractual commissioning deadlines, manufacturers facing delays in imported equipment deliveries may have to absorb additional financing costs, postpone production, and revise capacity expansion schedules without comparable relief. Delays in commissioning domestic solar cell manufacturing facilities could also constrain the availability of ALMM List-II-compliant cells, making it difficult for downstream manufacturers and developers to meet domestic sourcing requirements for reasons beyond their control.
Higher Freight Costs Pressure Manufacturers
Tanmoy Duari, CEO of <a href="https://axitecsolar.com/in" target="_blank" rel="noopener">AXITEC Energy</a> for India and Southeast Asia, noted that geopolitical tensions have substantially increased international shipping costs.
&#8220;Container shipping costs, which were previously around $800, have increased to approximately $4,000 to $5,000 per container,&#8221; Duari told Mercom India on the sidelines of the recently concluded Renewable Energy India (REI) Expo 2026.
The figures indicate a fivefold to more than sixfold increase in freight charges for the shipments Duari cited.
He said the impact is particularly significant for solar modules because their size and packaging requirements increase shipping costs relative to their value. Solar cells generally require less shipping space for an equivalent manufacturing capacity.
Higher freight expenses add to manufacturers&#8217; input and logistics costs, although the impact on final product prices depends on market competition and the ability to pass these costs on to customers.
Mohammed Saif Zaveri, Co-Founder &amp; Director, <a href="https://www.jrsttechnology.com/#home" target="_blank" rel="noopener">JRST Technology</a>, emphasized that higher freight and insurance costs affect Indian module and cell manufacturers both when importing raw materials and components and when exporting finished products to markets such as the U.S. and Europe.
“Longer routes also mean longer transit times, so manufacturers carry more inventory and working capital.”
Extended shipping schedules can increase inventory requirements and tie up working capital, pressuring manufacturers operating on narrow margins.
A transformer manufacturer said global logistics disruptions linked to the conflict have increased freight costs and complicated the procurement of copper, steel, and other inputs.
The manufacturer also pointed to growing domestic renewable energy demand as an additional source of supply-chain pressure, with some higher input costs being passed on to customers.
Visa Delays Complicate Equipment Commissioning
Beyond logistical challenges, delays in securing visas for Chinese technical personnel are affecting manufacturers that need overseas specialists to install, commission, and operate imported production equipment.
A solar manufacturer said Chinese technicians and trainers are required for specialized equipment installation, process optimization, and training Indian personnel. Delays in their arrival can affect commissioning schedules even after machinery has reached the manufacturing site.
According to the manufacturer, Chinese technical personnel may remain in India for three to six months after receiving the necessary approvals, depending on visa conditions and project requirements.
Their presence can also support knowledge transfer, helping Indian employees develop expertise in equipment operations, maintenance, and manufacturing processes.
The manufacturer said longer training periods could strengthen domestic technical capabilities and reduce dependence on overseas specialists for routine operations and future expansions.
However, these longer-term advantages depend on effective training and knowledge transfer and do not eliminate the immediate commissioning challenges caused by delayed personnel availability.
Dependence on China for Manufacturing Technology
The disruptions have also highlighted India&#8217;s dependence on Chinese manufacturing equipment, technology, and technical expertise.
Duari said this dependence presents challenges for manufacturers seeking to develop independent technological capabilities.
He believes the current supply-chain disruptions could encourage greater investment in domestically developed manufacturing equipment and technology.
However, developing indigenous equipment capabilities requires sustained investment in research, engineering, testing, and commercial validation. It is unlikely to immediately replace imported machinery already required for planned capacity expansions.
Localization and R&amp;D Remain Critical
Zaveri said the combined impact of higher freight costs, longer transit times, and greater inventory requirements reinforces the need to develop a stronger domestic supply chain.
“For an industry running on thin margins, that is a real squeeze. It is one more reason India has to localize the upstream chain, so that a disruption on a shipping lane doesn&#8217;t decide whether an Indian factory can run at full capacity,” he said.
Reducing dependence on imported equipment and components would require investment across the manufacturing value chain, including machinery, materials, process technology, and workforce development.
Industry stakeholders have also <a href="https://www.mercomindia.com/indias-clean-energy-manufacturing-boom-faces-an-rd-reality-check" target="_blank" rel="noopener">pointed</a> to limited domestic research and development (R&amp;D) investment as a constraint on technological innovation in India&#8217;s clean energy manufacturing sector.
According to Duari, India&#8217;s industrial ecosystem has historically placed greater emphasis on trading and adopting established technologies than on developing proprietary manufacturing technologies.
He added that insufficient incentives for innovation and limited customer acceptance of domestically developed technologies can discourage manufacturers from investing in new equipment and processes.
“Reducing dependence on imported technology would require sustained investment in innovation, greater customer acceptance of domestically developed products, and a supportive business environment,” he opined.
The current disruptions highlight a challenge beyond adding manufacturing capacity. India&#8217;s ability to build a resilient solar manufacturing industry will also depend on developing domestic equipment suppliers, strengthening technical expertise, and increasing R&amp;D investment.

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