Import Duty on Chinese Solar Modules by Indian Government

You can read the sequel to this blog post here.

In our First Blog Post, We did a comparison between India’s Growth in Renewables against Global Growth using 2 different parameters. The first parameter showed the global growth inclusive of China’s contribution while the second parameter showed India vs World growth excluding China. Such has been China’s meteoric rise that it seems unfair to turn it into a benchmark for other countries.

On 5th Jan 2018, the DGS recommended a 70% safeguard duty on Imported Chinese Modules. An article in Bloomberg has reported how India bought a third of China’s $8 billion of shipments from January through September in 2017. These numbers have been sourced  from a BNEF research. The seriousness of the situation was  first realized in August 2017 when Economic Times reported that the DGAD is considering taxing Chinese Solar Module Manufacturers and Wind Energy Equipment Manufacturers. The application was filed in June 2017 against China, Malaysia and Taiwan.

The finance Ministry has not yet approved the tax on Solar Modules.  If the tax is approved, it will spell relief for Indian Panel Manufacturers but slow down the growth of the Indian Solar Industry. The speculations have left Solar Developers in despair.

An Important news that has streamed in this week, reported by Livemint,Donald Trump has levied 30% tariff on imported solar cells and module in the first year, with the duties declining to 15% in the fourth year. Lets see how this decision affects Solar module Prices globally and especially for India.

As mentioned earlier in the post, the tax is pending an approval from the Finance Ministry. This was not the first appeal registered by Indian Solar Manufacturers.Here’s a Snapshot of the appeals made since 2012 against cheap Imports from Neighboring South Asia countries countries as reported by Business Standard. What needs to be seen is that Will the Solar Manufacturers be lucky to have their way this time around?

Snapshot

2012: First case of dumping filed by group of indigenous solar cell & module makers

May 2014: identifies injury to tune of 60-110% by the US and China, finalises anti-dumping duty

June 2014: Finance ministry did not impose the duty, let it lapse

July 2014: Piyush Goyal urges domestic industry to drop case, assures enough demand pipeline| 950 Mw projects for domestic industry during 14-15

September 2016: WTO rules against India to have a separate solar programme for the domestic solar cell & module industry.

In our next blog post, we will discuss the repercussions of the Import Tariff levied by the Indian and American Government on the Indian Solar Industry.

Stay Tuned!

Note :-

The blog was updated on 26th Jan at 9:49 to change the import duty from 7.5 % to 70 %

You can read the sequel to this blog post here.

Source:-

  1. https://www.bloomberg.com/news/articles/2018-01-04/india-is-said-to-consider-7-5-tariff-on-imported-solar-panels
  2. https://economictimes.indiatimes.com/news/economy/foreign-trade/anti-dumping-authority-recommends-import-duty-on-solar-and-wind-energy-equipment-from-china/articleshow/59906447.cms
  3. http://www.business-standard.com/article/economy-policy/indian-solar-panel-makers-demand-anti-dumping-duty-against-china-117060600255_1.html
  4. http://www.livemint.com/Industry/rg4fMAJLJIrqg8urW2UzjI/Donald-Trumps-solar-module-tariff-barrier-may-help-Indias.html

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