India plans to impose tariffs on Chinese solar system products 2018-07-18

The Indian Ministry of Trade proposed on the 16th to impose a 25% tariff on solar cells and solar modules imported from China, trying to counter what it believes is a threat to the domestic battery equipment manufacturing industry.


According to Reuters New Delhi reported on July 16, the price of solar cells and solar modules is declining, which has led to a decline in the cost of solar power generation, resulting in the increasing use of this technology by Indians. More than 90% of the two commodities in India are imported from China. India plans to increase the share of renewable energy generation to total installed capacity from 20% to 40% by 2030.


The two-year protective tariff proposed by the Ministry of Trade applies to imported products from China and Malaysia. The tariff rate will fall to 20% in the first six months of the second year and to 15% in the next six months. This proposal is lower than the 70% tax rate proposed by the Indian authorities in January.


According to reports, this proposal of the Ministry of Trade is included in a report published by it. The proposal will be submitted to the government for approval. The General Administration of Foreign Trade of India announced in the report that this proposal aims to address the "serious threat" of Chinese imports to the domestic solar manufacturing industry. Indian solar cell and solar module makers say cheap Chinese imports "harm the domestic industry"; while Chinese manufacturers say imports help India accelerate its plans to adopt renewable energy. China Chamber of Commerce for Import and Export of Mechanical and Electrical Products said: "The real cause of harm to India's domestic industry is the aggressive pricing practices of other Indian producers, not imports."


The General Administration of Foreign Trade of India wrote that India’s share of China’s solar cell and solar module exports rose from about one-fifth in the first half of 2016 to two-fifths after one year. It also said that China "began to focus more on the Indian market." Some Indian solar power companies have reservations about tariffs.
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