Indian solar association calls for immediate implementation of 50% BCD

Facebook
Twitter
LinkedIn
Reddit
Email
Image: Tata.

India should put in place immediately a basic customs duty (BCD) of at least 50% on solar equipment to safeguard the future of local manufacturers, the chairman of trade body All India Solar Industries Association (AISIA) said.

Hitesh Doshi called on policymakers to implement the “much-needed” BCD with immediate effect to protect domestic equipment producers.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

“The survival of the manufacturers requires the government to look into [the] restructuring of existing policies like [the] implementation of at least 50% basic customs duty,” he said.

That rate is a major step up from the 20% levy proposed by India’s Ministry of New and Renewable Energy earlier this summer – and would be introduced on top of a safeguard duty, which has been extended for another year. Levied on all solar cells and modules imported from China, Thailand and Vietnam, the safeguard duty of 14.9% will be in place until 28 January 2021, when it will reduce to 14.5% until 29 July 2021.

However, Doshi told PV Tech that with the “significant” manufacturing cost difference between China and India, producers in India need further protection. “The safeguard duty is not enough,” he said.

According to AISIA, India imported solar equipment from China last year with a total value of US$1.3 billion. “This shows the potential the sector holds for the domestic manufacturers to contribute to the GDP, should the focus be shifted towards enabling the domestic players,” Doshi added.

AISIA said the recent government decision to provide land near ports to set up manufacturing units marks a “step in the right direction”, but the BCD should be implemented as an “immediate respite”.

The BCD appeal follows warnings last month by Fitch Solutions that a double hit of safeguard and basic customs duties could result in a large number of project cancellations in India, with tariff rates becoming too low to cover project costs, rendering them financially unviable.

The consultancy raised concerns that the imposition of the BCD would be “largely insufficient” in its aim of stimulating domestic manufacturing, given that the country still imports a substantial majority – around 80% – of solar equipment from manufacturers based in Malaysia and China.

10 March 2026
Frankfurt, Germany
The conference will gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing out to 2030 and beyond.

Read Next

September 9, 2025
The average price of solar modules sold in Europe fell marginally between July and August, while buyers’ confidence remained steady.
September 9, 2025
China has advanced in the integration of AI and new energy, covering areas such as power forecasting, electricity markets, and O&M.
September 9, 2025
Leading solar industry professionals discussed the importance of US solar PV manufacturing at the RE+ trade show in Las Vegas, US.
September 8, 2025
Vikram Solar has won a 336MW module supply agreement from L&T Construction for the 2.3GW Khavda solar park in Gujarat. 
September 4, 2025
India’s Goods and Services Tax (GST) Council, the joint forum of the Centre and States, has reduced the GST rate on renewable energy components from 12% to 5%. 
September 4, 2025
The Czech national cybersecurity agency has warned that Chinese solar inverters represent a threat to the country’s data security.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines