Tata Power Plans First Solar Exports To Europe, As EU Seeks Shift Beyond China

Tata Power is preparing to export solar equipment to Europe for the first time taking advantage of the European Union’s push to reduce dependence on Chinese suppliers under the Net-Zero Industry Act, reported Reuters citing CEO Praveer Sinha. In 2023, nearly 94 percent of the EU’s solar modules and cells were imported from China, but new diversification policies and trade agreements have opened the door for Indian manufacturers. Italy has already created space for non-Chinese solar projects, making it a key entry point for Tata Power.

The company currently has 4.9 GW of integrated cell and module capacity and is working toward expanding to 10 GW of ingot and wafer production. Its initial export target is between 2 and 3 GW of solar cells and panels to Italy, with potential expansion across Europe. India’s broader solar manufacturing base, with 200 GW of module capacity and 30 GW of cell capacity, positions the country as a credible alternative supplier.

While this marks a significant opportunity for India’s renewable sector, challenges remain. Chinese modules are still cheaper, and EU certification requirements could slow entry. Tata Power’s ability to scale production quickly will be critical to meeting demand. If successful, this move strengthens India’s role as a global renewable hub and aligns with its domestic clean energy ambitions while opening new export revenue streams.

The India-EU Trade Deal

India and the European Union concluded negotiations for a landmark Free Trade Agreement (FTA) in January 2026, with formal signing scheduled by the end of 2026 and implementation in early 2027. The deal grants duty‑free access to 93% of Indian exports to the EU and significantly lowers tariffs on European goods entering India.

Key Features of the India–EU Trade Deal 2026

Market Access

• Indian exports: About 93% of shipments will enter the EU with zero duties, covering textiles, leather, marine products, gems, jewellery, and other labour‑intensive sectors.
• EU exports: Tariffs will be eliminated or reduced on 96.6% of EU goods exports to India, saving European exporters an estimated €4 billion annually.

Tariff Reductions

• Luxury cars: Import duties in India will drop from 110% to as low as 10% over time.
• Wines: Tariffs reduced from 150% to 75% initially, eventually reaching 20%.
• Olive oil: Duties cut from 45% to zero within five years.
• Processed foods: Tariffs up to 50% eliminated.

Strategic Impact

• Creates one of the world’s largest trade partnerships, covering nearly 2 billion people and about 25% of global GDP.
• Strengthens supply chain resilience, technology collaboration, and investment flows under the India–EU Trade and Technology Council.
• Positions India as a major hub for clean energy, biotech, semiconductors, and services exports, while giving EU firms privileged access to India’s fast‑growing market.

Comparison: Benefits for India vs EU

Benefit	India	EU
Export Access	93% duty‑free entry into EU	Wider access to Indian services market
Tariff Savings	Boost for textiles, gems, marine products	€4 billion annual savings on duties
Luxury Goods	Cheaper imports of cars, wines, olive oil	Expanded consumer base in India
Strategic Position	Integration into EU value chains	Doubling of goods exports to India by 2032