To protect India’s PV industry, India’sMinistry of Commerce and Industry suggested imposing anti-dumping tariffs on PV products imported from certain countries. The suggestion will find a final determination of whether to officially start investigation on August 22nd.
Being one of the emerging PV markets, India has been showing strong intention of developing solar power. The newly elected president Narendra Modi’s energy policy, which especially focuses on solar power, is a sign of the nation’s ambition. However, most of the local PV manufacturers don’t agree with imposing anti-dumping tariffs on PV product imports. Solar Energy Association of India estimates that the anti-dumping tariffs may increase costs of PV generation by around 50%, causing severe damage to India’s PV industry and market.
India’s manufacturing capacity is currently unable to meet the domestic demand. As a result, most PV equipment and products are imported from USA, mainland China, Taiwan and Malaysia. The potential tariffs are forcing PV installations to be suspended until the decision for anti-dumping investigation is made. In conclusion, the strong reliance upon PV imports is a negative factor when it comes to imposing extra tariffs on imported PV products; disputes over investigation and ruling may also worsen the tensional trade relationships between India and the United States.