the Indian government may extend safeguard tariffs on imports of solar cells and modules from China
India imposed tariffs on imports of solar photovoltaic (PV) equipment from China and Malaysia in 2018. The tariff was initially set at 25 percent and reduced to 20 percent by mid-2019, then to 15 percent at the start of this year and until July 2020.
According to the report, the government is considering extending the safeguard tax at the request of domestic manufacturers of solar equipment.
Domestic manufacturers believe Chinese manufacturers are looking for opportunities in the Indian market after a drop in bulk orders from major us buyers. This has raised domestic concerns that, without guaranteed tariffs, India's market will be flooded with Chinese imports.
India's imports of solar cells fell to $1.4 billion (1.25 billion euros) between April 2019 and November 2019. Imports of solar cells were $2.15 billion in fy2018/2019, compared with us $3.83 billion in the same period last year. But this decline has led directly to a decline in new solar capacity in India.