How safeguard duty on solar imports from China benefited domestic suppliers, but hit India

The safeguard duty on solar imports from China and Malaysia has produced mixed results – on one hand, market share of Indian solar module suppliers (a handful of them to be precise) has more than doubled to 30% in the two years to FY20 and on the other hand, the pace of solar power capacity addition in India has declined.

The Union government had imposed a 25% safeguard duty in July 2018 for two years (it has just been extended for another year to July 2021, at a rate of 15%). The impost has helped a few domestic module manufacturers who have increased their market shares (see chart). However, about 50% the country’s 11 giga-watt (GW) domestic solar-panel capacity and another 3 GW of cell-manufacturing facilities still remain unutilised.

financial express
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