Ever since India lost its appeal against a World Trade Organisation (WTO) panel ruling in September 2016, India's solar firms have taken a beating, with many including Indosolar close to shutting down or struggling against large debts. The WTO had ruled that India's requirement (implemented in 2011) that solar modules and cells should be "made in India", violated international norms. 

Since the ruling, orders have dried up for Indian firms, as Chinese companies have offered India's solar power plants better equipment at lower prices. India's solar industry has been hit by their dependence on imported material, and high costs of capital relative to Chinese companies.

The biggest beneficiaries of Prime Minister Modi's renewable energy push have as a result, been Chinese firms, where equipment such as solar cells is sold below the production costs of Indian firms. While Indosolar's net profits have grown in the March 2017 quarter, revenue has fallen by 12% QoQ, and doubts continue about the sustainability of its business with weak order inflows.