India’s anti-dumping probe against China, Thailand and Vietnam
The Ministry of Commerce has recently initiated the anti-dumping investigation against China, Vietnam and Thailand. The investigation is against the import of solar cells from these countries. The investigation has been started by the Ministry following the application submitted by the Indian Solar Manufacturer Association.
What is the issue?
The solar cells are the basic ingredients in the manufacturing of solar modules. The solar cells that are being imported from China are 15% to 20% less expensive as compared to that of the solar cells produced in India. This is affecting the business of solar modules produced using locally available raw materials. Ultimately it is increasing the price of domestic solar modules.
Earlier Actions of GoI
The Government of India in 2018 had imposed 25% of safeguard duty on solar imports from Malaysia and China. This was later extended to July 2021 at a rate of 15%. After the imposition of this safeguard duty, the imports from Thailand and Vietnam have increased. Between 2018 and 2020, the import of solar cells from Thailand and Vietnam grew at 5,750% and 800% respectively!
Also, an anti-dumping investigation against the import of solar cells from Malaysia, Taiwan and China was initiated by the Government in 2017. However, it was eventually called off on 2018.
The GoI has introduced Rs 4,500 Production Linked Incentive Scheme for solar module manufacturing.
What is worrying ISMA?
The solar cell and solar module imports will attract a customs duty of 25% and 40% respectively from 2023. With the safeguard duty against Chinese imports of solar cells ending in July 2021, there will be no import barriers.
As of today, the module making capacity if 10 GW and domestic cell manufacturing capacity is around 3 GW.
Month: Current Affairs - May, 2021