China previously catered to over 90% of India’s domestic demand for solar cells and modules.

After creating adequate domestic capacity in the last five years, India may soon impose a 30% anti-dumping duty for three years on imports of solar cells and modules (whether assembled or not) from China—which was catering to over 90% domestic demand in the past.

The Directorate General of Trade Remedies (DGTR) has recommended imposing anti-dumping duties, following investigations into allegations by the domestic industry that China was dumping solar cells and modules into India. DGTR, which investigated imports from China between April 1, 2023, and March 31, 2024, concluded that imports rose by nearly 240% during the period. The Commerce Ministry will study the recommendations of DGTR and will decide on imposing the anti-dumping duty.

China has a huge capacity for producing solar modules, approximately 861 gigawatts as of 2023. Its domestic demand is only 608.9 GW. In comparison, the Indian demand was only 43.8 GW. India’s installed module capacity has reached over 90 GW, with a target of 120 GW by 2028-2030, says the Solar Supply Chain Map 2025 of Hong Kong-based consultancy Sinovoltaics. India’s solar cell capacity, currently near 30 GW, is expected to increase to 65 GW by 2030, while ingot capacity is projected to double from 14 GW to 28 GW. In 2017, India had only 3 GW of cell capacity and 8 GW of module capacity.

The Make in India initiative and PLI scheme helped the country rapidly scale up its manufacturing capabilities. The Ministry of New & Renewable Energy (MNRE) has operationalised the Approved List of Models & Manufacturers (ALMM) since 2021, a mechanism to promote and protect domestic manufacturing, ensure the reliability of producers, and safeguard consumer interests, while ensuring the country’s larger energy security.

Source: Fortune India