New tariffs on import of solar cells and modules on the cards

India plans to impose new tariffs on imports of solar cells and modules from 1 April 2022, power and renewable energy minister Raj Kumar Singh said.

The finance ministry will issue an order to impose a basic customs duty of 40% on modules and 25% on solar cells as part of the Atmanirbhar Bharat or self-reliant India strategy, Singh said in an interview. The customs duty will replace a 15% safeguard duty that is being imposed on imports from China and Malaysia.

Such a move will make solar cells and modules imported from China expensive and is being seen as part of an economic response to the violent face-off with China along the Ladakh border. Along with leveraging its growing green energy market to boost manufacturing, India is looking to play a larger role in global supply chains.