Pointing to the ongoing discussions on solar tariffs and trade cooperation between India and the US, the Indian Solar Manufacturing Association (ISMA) on Monday wrote to the Government of India requesting it to structure the trade agreement in a way that will encourage bilateral trade in solar components and safeguard the market from unfair trade practices.
ISMA’s recommendations included reciprocal duty exemptions across all segments of the solar photovoltaic (PV) value chain. The suggestions mentioned in the letter written by Deepesh Nanda, President, ISMA included promotion of “zero-duty” trade for solar cells, solar modules and upstream PV segments that will help India’s entry into manufacturing of upstream segments. The body also called for facilitating zero-duty imports of capital goods and equipment used in the PV manufacturing industry from the US and roll-out of additional incentives for US fabricators for setting up manufacturing bases in India.
In order to preserve the unique strategic value of this relationship, “This bilateral structure should be exclusive and insulated from broaded international free trade agreements,” Nanda stated. The suggestions also included those for safeguarding the Indian market from unfair trade practices like dumping of solar products from China. The ISMA recommended “anti-circumvention measures” which included mandatory country-of-origin tracing for all imported solar components and preserving India’s ability to impose anti-dumping duties, safeguards and tariff corrections if unfair trade practices are observed.
“India’s solar manufacturing industry stands at the threshold of becoming a global leader. With the right trade architecture in place, supported by disciplined policy continuity and robust safeguards, the proposed bilateral trade agreement with the US could mark a defining moment in India’s industrial and clean energy journey,” Nanda added.