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After creating adequate domestic capacity, India plans to impose anti-dumping duty on Chinese imports of solar cells and modules

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China previously catered to over 90% of India’s domestic demand for solar cells and modules.
After creating adequate domestic capacity, India plans to impose anti-dumping duty on Chinese imports of solar cells and modules
China has a huge capacity for producing solar modules, approximately 861 gigawatts as of 2023. Its domestic demand is only 608.9 GW. 

After creating adequate domestic capacity in the last five years, India may soon impose a 30% anti-dumping duty for three years on imports of solar cells and modules (whether assembled or not) from China—which was catering to over 90% domestic demand in the past.

The Directorate General of Trade Remedies (DGTR) has recommended imposing anti-dumping duties, following investigations into allegations by the domestic industry that China was dumping solar cells and modules into India. DGTR, which investigated imports from China between April 1, 2023, and March 31, 2024, concluded that imports rose by nearly 240% during the period. The Commerce Ministry will study the recommendations of DGTR and will decide on imposing the anti-dumping duty.

China has a huge capacity for producing solar modules, approximately 861 gigawatts as of 2023. Its domestic demand is only 608.9 GW. In comparison, the Indian demand was only 43.8 GW. India’s installed module capacity has reached over 90 GW, with a target of 120 GW by 2028-2030, says the Solar Supply Chain Map 2025 of Hong Kong-based consultancy Sinovoltaics. India’s solar cell capacity, currently near 30 GW, is expected to increase to 65 GW by 2030, while ingot capacity is projected to double from 14 GW to 28 GW. In 2017, India had only 3 GW of cell capacity and 8 GW of module capacity.

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DGTR stated that the examination of trends in the context of injury analysis covered the periods 2020-21, 2021-22, 2022-23, and the period of investigation. Domestic companies, including FS India Solar Ventures, Jupiter International, Tata Power Solar Systems, and TP Solar, were the complainants. DGTR probed imports by about 118 Chinese companies into India.

The complainants contended that there is only one producer of cells, five producers of both cells and modules, while there are 134 producers of modules that are not backwardly integrated. The majority of such producers import solar cells and assemble them into modules or panels. The import volume and production capacities of solar modules are higher than those for cells. Solar modules are priced 70% higher than cells. Due to the dumped imports, the domestic industry lost various contracts.

Despite having various confirmed orders, the consumers cancelled or reduced the orders with FS India in favour of cheaper Chinese imports. The profits of the domestic industry declined by 275% and its cash profits declined by 158%, they contended.

“The Authority recommends imposition of an anti-dumping duty equal to the lesser of the margin of dumping and the margin of injury to remove the injury to the domestic industry. Accordingly, the Authority recommends imposition of definitive anti-dumping duty on the imports of subject goods originating in or exported from the subject countries, for a period of three years, from the date of notification to be issued in this regard by the Central Government, as a percentage of the CIF value of the goods as indicated in Column 7 below,” said DGTR.

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