🇮🇳 Hindi-Chini Bhai Bhai? 🇨🇳
After the Modi govt 1st came to power in ’14, they set up an ambitious plan to increase India’s solar capacity to 100GW by 2022.
As per data from March ’19, we have reached 30GW and China has played a major role in helping us make projects viable and sustainable. We have been their biggest export market for solar panels for 2 years, but last year, our govt slapped an import duty of 25% on finished solar modules (ready to install) in a bid to encourage local manufacturers.
The result, 2018-19 was the first year wherein we witnessed a drop in installation after growing at a good pace (40-60% per annum) for the last 4 years.
Our govt did not factor in that the import duties on the components/raw materials required to build solar modules have always damaged the ability of our local manufacturers in keeping prices competitive and eventually, we depend on China for these too.
The End Result – Demand Falls significantly while Local manufacturers fight their own battles. Let’s just say that we’re going to need China & an import duty may not serve in our immediate interests and may in fact, make things worse for Indian stakeholders.