Chinese hand? Solar imports surge from FTA nations

NEW DELHI: A surge in duty free solar imports from southeast Asian countries that have free trade agreements (FTAs) with India, have raised suspicion of China re-routing supplies to escape customs duty, but the government is unlikely to slap safeguard duty.

Available data shows the share of solar modules from FTA countries rising to 48% of total imports in the first two months of the current fiscal against 52% in 2022-23. But officials said safeguard duty is not feasible because of FTA and could also delay projects as domestic supplies lag demand. India began charging basic customs duty of 40% on solar modules and 25% on cells from April last year to ensure level-playing field for domestic manufacturing.