The United States has imposed a preliminary anti-dumping duty of 123.04% on solar cells and modules imported from India, a move that could further restrict shipments to a key export market. However, its immediate impact may be limited as companies have already diversified their export destinations.
Critical Circumstances Found by US Commerce Department
The US Department of Commerce stated that it had found “critical circumstances” in its investigation involving firms such as Mundra Solar Energy, Mundra Solar PV, Kowa, and Premier Energies. It added that the suspension of liquidation would apply to shipments up to 90 days prior to the order’s publication.
Indian Solar Industry Criticizes Decision
India’s solar industry has strongly criticized the decision. Subrahmanyam Pulipaka, CEO of the National Solar Energy Federation of India (NSEFI), said, “The findings of the investigation seemed to be fundamentally flawed and without any logical basis.” He added that NSEFI has initiated a formal representation to contest the ruling.
Amit Manohar, Secretary General of the Indian Solar Manufacturers Association (ISMA), stated that the industry would challenge the move further. “We will contest this through the final determination and the ITC proceedings, and remain hopeful of a favourable outcome,” he said.
Exports Already Hit by High Tariff Burden
The latest duty adds to existing countervailing duties of over 125%, taking the combined tariff burden on Indian solar exports to more than 200%, effectively making shipments to the US unviable, industry officials said. “With this kind of tariff stack, Indian modules are effectively locked out of the US market,” an industry official noted.
Diversification Cushions Immediate Impact
Despite the steep tariffs, exporters have already begun shifting focus to alternative markets such as Europe, West Asia, and other emerging regions over the past few years, limiting the immediate fallout. This development comes even as India and the US are engaged in negotiations for a bilateral trade agreement, having recently concluded a three-day round of talks in Washington.
Shares of Waaree Energies fell 2.7% to Rs 3,320 on the BSE, while Vikram Solar declined 2.3%. Premier Energies, however, recovered from early losses to close 1% higher.
