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The Indian Solar Industry Faces the Brunt of U.S. Duties

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The Trump administration has decided to end India’s status as a beneficiary developing country. India will not be allowed to export freely to the U.S. some 2,000 products worth $6 billion starting June, 5. This list of goods includes solar cells and panels.

The Indian solar industry’s total exports to the U.S. amounted to more than $50 million in the calendar year 2018. This duty will adversely affect the manufacturers who were banking upon the US for their future exports. The USA is the biggest export market for India accounting for 47% of total Indian exports, followed by Denmark, Nigeria, Poland, Australia, UK, etc.

File photo of workers cleaning photovoltaic panels inside a solar power plant in Gujarat

The Trump administration had imposed a 30% safeguard duty on crystalline silicon PV cells either assembled or not assembled into other products. Countries like India, Brazil, South Africa, and Turkey were then exempted from this duty. This duty was supposed to be reduced by 5% for each successive year, thereon. However, India has now been included in the list as President Trump intends to end preferential trade treatment for India.

“I have determined that India has not assured the United States that India will provide equitable and reasonable access to its markets. Accordingly, it is appropriate to terminate India’s designation as a beneficiary developing country effective June 5, 2019,” said President Trump in a proclamation.

Source: Mercom India

The U.S. government has engaged in safeguarding its local businesses by taxing the imports from other countries. The U.S.-China trade ward has jeopardized global trade and commerce to a large extent. However, in doing so millions of jobs have come in danger in the U.S. Farmers, industrialists, tech companies are all facing the brunt of these import duties. The Indian solar industry is already facing a slowdown as a result of safeguard duty imposition on Chinese imports. The large domestic manufacturers who were looking at making some profits out of exports will now have to rethink their strategies. Dark times for the Indian Solar Industry!

Also, read Financial Woes Slow Down The Pace Of Solar Development in India


Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to

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