India today imposed safeguard duty on solar cells imports from China and Malaysia for two years to protect domestic players from steep rise in the inbound shipments of the product.
This comes following recommendations by the Directorate General of Trade Remedies (DGTR), under the commerce ministry. As per the notification of the finance ministry, 25 per cent safeguard duty have been imposed for one year starting from today. The duty will be 20 per cent during July 30, 2019 to January 29, 2020 and 15 per cent during January 30, 2020 to July 29, 2020.
DGTR in its investigations has concluded that the increased imports of solar cells in India have caused “serious injury” and “threaten to cause serious injury” to the domestic producers.
India is targeting to 100 gigawatt (GW) solar capacity by 2022. Solar cells, electrical devices that convert sunlight directly into electricity, are imported primarily from China, Malaysia, Singapore and Taiwan. Imports of the cells from these countries account for more than 90 per cent of the total inbound shipments in the country.