India imposes 25% safeguard duty on solar imports from China PR and Malaysia

The Indian government imposition of 25% import duties on solar cells and modules from China and Malaysia to safeguard domestic manufacturers does not include solar cells and modules imported from Indonesia and Vietnam, due to being classified as ‘developing countries.’

Further checks have indicated that Thailand and Philippines would also be classified as developing countries and therefore excluded from the duties. This would assist companies such as leading 'Silicon Module Super League' (SMSL) member JinkoSolar, which has a major manufacturing operation in Thailand.   

A number of Chinese PV manufacturers and other foreign suppliers have production operations in Indonesia and Vietnam, enabling them to supply solar products in India, without the import duty.

Leading integrated high-efficiency monocrystalline module manufacturer and ‘Silicon Module Super League’ (SMSL) member LONGi Green Energy Technology had already reignited previously suspended manufacturing plans in Andhra Pradesh, India. 

LONGi is investing US$309 million, including around US$240 million in constructing a new facility with an initial nameplate capacity of 1,000MW of monocrystalline solar cells and expand its mothballed 500MW module assembly plant to 1GW. 

Given the slim margins for suppliers into the Indian market, the exclusion from the safeguard duties could be a major competitive advantage over the next two years of the duties being imposed. 

Further updates to follow.