Follow India Renewable Energy News on WhatsApp for exclusive updates on clean energy news and insights

India’s Proposed Antidumping Duty on Chinese Solar Cells Could Boost Domestic Manufacturing

The Directorate General of Trade Remedies (DGTR) has recommended imposing an antidumping duty of up to 30% on solar cells and modules imported from China for a three-year period. The move aims to protect India’s domestic solar manufacturing industry, which has long struggled to compete with cheaper imports. Industry stakeholders say the measure, combined with the Approved List of Models and Manufacturers (ALMM-II) policy for cells, could create a more stable and competitive environment for local producers.

While the proposal is expected to strengthen domestic solar cell and module manufacturing, it may temporarily raise costs for project developers. Industry leaders, including RenewSys India’s Avinash Hiranandani and AXITEC Energy’s Kamini Gupta, noted that Chinese manufacturers’ sharp price reductions—often by over 50%—have pressured Indian firms to sell below cost. The antidumping duty, they argue, will level the playing field and encourage new investments in upstream capacities such as wafers and ingots, ultimately building a more resilient supply chain.

In the short term, the policy could cause a moderate rise in module prices and temporary supply constraints, as many Indian module makers still depend on imported Chinese cells. Analysts estimate project costs could increase by around RS1.3 (Dollar 0.014)/W, affecting utility-scale and rooftop projects. However, as India’s new solar cell lines become operational by 2027–2028, manufacturers expect import dependence to fall sharply and prices to stabilize. Companies such as Redren Energy are already planning major capacity expansions to meet future domestic demand.

Manufacturers have also warned against potential trade diversions, where Chinese exporters might route shipments through other Asian countries like Vietnam or Malaysia to avoid duties. Still, the Indian government is reportedly strengthening investigative and policy frameworks to prevent such practices. Overall, the industry views the proposed antidumping duty as a necessary step toward long-term self-reliance, fostering investment, job creation, and technological advancement in India’s solar manufacturing sector.