The US has imposed preliminary countervailing duties of up to 126 percent on certain solar equipment imported from India, dealing a fresh blow to Indian renewable energy exporters targeting the American market.
The move follows an investigation by the US Department of Commerce into alleged unfair subsidies provided to Indian solar manufacturers. The duties are aimed at offsetting what Washington considers financial support that gives Indian exporters an unfair pricing advantage in the US.
According to the preliminary findings:
Countervailing duties of up to 126 percent have been proposed on select Indian solar imports.
The investigation focuses on subsidies allegedly provided by the Indian government to domestic manufacturers.
The duties are not yet final and may be revised after further review.
If confirmed, the steep levy could significantly raise the cost of Indian-made solar modules and cells in the US, potentially affecting export volumes.
The US is one of the key export destinations for Indian solar equipment makers. A duty of this magnitude could:
Reduce the price competitiveness of Indian solar products.
Lead to order cancellations or renegotiations.
Slow capacity expansion plans by exporters targeting the US market.
The development comes at a time when India is aggressively expanding its solar manufacturing base under production-linked incentive schemes to reduce import dependence and become a global supplier.
The decision may add friction to ongoing India–US trade engagements. While the clean energy partnership between the two countries has strengthened in recent years, trade remedies such as anti-dumping and countervailing duties continue to remain sensitive issues.
The final determination by US authorities is expected in the coming months. Until then, exporters and investors will closely watch whether the proposed 126 percent duty is moderated or retained.
