The US has imposed a steep 126% countervailing duty on Indian solar exports, citing subsidy concerns. India’s Trade Minister clarified that such anti-dumping or safeguarding duties are not linked to trade deals. The move threatens India’s $4 billion solar export pipeline, raising questions about market access and global energy trade.
Key Highlights
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US Action: The US Department of Commerce announced a 126% preliminary duty on crystalline silicon photovoltaic cells and modules from India, alleging unfair subsidies.
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Impact on Exporters: Indian solar firms including Waaree Energies, Vikram Solar, Premier Energies, and Adani Solar face a severe setback, as over 90–95% of India’s solar exports go to the US.
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Trade Minister’s Clarification: India’s Trade Minister stated that anti-dumping and safeguard duties are typically not linked to trade agreements, signaling that the government may not intervene directly.
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Industry Fallout: The duty erodes India’s cost advantage, potentially wiping out competitiveness against US-made modules. Exporters may need to diversify markets or scale up domestic supply.
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Global Context: The US also raised duties on solar imports from Indonesia (143%) and Laos (81%), reflecting a broader protectionist stance in renewable energy trade.
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Next Steps: Final duty rates are expected by July 2026, leaving trade flows volatile until then. Indian companies may pursue legal appeals under WTO frameworks.
What This Means
The decision underscores rising trade tensions in clean energy. For India, it highlights the urgency of diversifying export markets and strengthening domestic demand. For global solar supply chains, the move could raise costs, slow adoption, and reshape competitive dynamics in renewable energy.
Sources: The Economic Times, Outlook Business, The Quint, Mint, Times of India, The Hindu