The United States has imposed a preliminary countervailing duty of up to 126% on solar cell imports from India, alleging that Indian manufacturers benefited from government subsidies that gave them an unfair pricing advantage in the American market.
The decision follows an investigation by the US Department of Commerce into whether Indian solar producers received financial support that allowed them to sell their products at lower prices than domestic manufacturers in the US. The probe found that multiple subsidy programmes, including incentives linked to manufacturing and export promotion, enabled Indian firms to undercut American competitors.
The duties are provisional and will be reviewed before a final determination is made. However, the move is expected to significantly impact Indian solar exports to the US, one of the key overseas markets for the country’s renewable energy equipment.
The tariff varies by company, with some exporters facing the full 126% levy. If confirmed in the final ruling, the measure could sharply reduce the price competitiveness of Indian solar cells and modules in the US market.
The development comes at a time when India and the US are engaged in negotiations to deepen trade ties, and it could become a contentious issue in bilateral discussions. Industry observers say the decision may disrupt supply chains and slow the growth of India’s solar manufacturing sector, which has been expanding under government-backed production-linked incentive (PLI) schemes.
Indian exporters have argued that the support they receive is aimed at building domestic manufacturing capacity and is consistent with global clean energy goals. They also point out that India is an important player in the global transition to renewable energy and that trade restrictions could raise costs for solar deployment.
The US International Trade Commission will now examine whether the imports have caused material injury to American manufacturers. A final decision on the duties is expected later this year.
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