India considers slashing import taxes on solar panels
POWER & RENEWABLE ENERGY

India considers slashing import taxes on solar panels

India is considering reducing import taxes on solar panels and seeking a rollback in goods and services taxes (GST) on these devices to address a shortage in local production and meet the increasing demand for renewable energy.

The renewable energy ministry in India has engaged in discussions with the finance ministry to gain approval for the proposed reduction of the import tax on solar panels from 40% to 20%, the sources revealed. They emphasised that the decision is not yet finalised and hence requested anonymity.

Furthermore, the two ministries are contemplating recommending a reduction in the goods and services tax (GST) on solar panels from 12% (imposed in 2021) to 5% to the Goods and Services Tax Council, the sources added.

The 40% import tax on solar panels was implemented by India in April 2022, along with a 25% tax on solar cells, with the intention of discouraging imports from China. This move was aligned with Prime Minister Narendra Modi's ambitious plan to foster self-reliance and reduce emissions by expanding renewable energy generation.

However, one of the sources acknowledged that domestic production capacity falls short of meeting the demand, necessitating the need for imports to bridge the gap.

The proposal emerges as Prime Minister Modi aims to achieve a target of 365 gigawatts (GW) of installed solar capacity by 2031-32. This target is part of a broader push towards green energy, encompassing initiatives such as promoting electric vehicles and sustainable aviation fuel.

As of now, the finance ministry of India has not responded to email inquiries seeking comments. A spokesperson for the renewable energy ministry has assured that a comment will be provided at the earliest opportunity.

India is considering reducing import taxes on solar panels and seeking a rollback in goods and services taxes (GST) on these devices to address a shortage in local production and meet the increasing demand for renewable energy. The renewable energy ministry in India has engaged in discussions with the finance ministry to gain approval for the proposed reduction of the import tax on solar panels from 40% to 20%, the sources revealed. They emphasised that the decision is not yet finalised and hence requested anonymity. Furthermore, the two ministries are contemplating recommending a reduction in the goods and services tax (GST) on solar panels from 12% (imposed in 2021) to 5% to the Goods and Services Tax Council, the sources added. The 40% import tax on solar panels was implemented by India in April 2022, along with a 25% tax on solar cells, with the intention of discouraging imports from China. This move was aligned with Prime Minister Narendra Modi's ambitious plan to foster self-reliance and reduce emissions by expanding renewable energy generation. However, one of the sources acknowledged that domestic production capacity falls short of meeting the demand, necessitating the need for imports to bridge the gap. The proposal emerges as Prime Minister Modi aims to achieve a target of 365 gigawatts (GW) of installed solar capacity by 2031-32. This target is part of a broader push towards green energy, encompassing initiatives such as promoting electric vehicles and sustainable aviation fuel. As of now, the finance ministry of India has not responded to email inquiries seeking comments. A spokesperson for the renewable energy ministry has assured that a comment will be provided at the earliest opportunity.

Related Stories

Gold Stories

Next Story
Infrastructure Energy

Asian Energy Services Q1 FY27 PAT Rises 129 Per Cent

Asian Energy Services Limited reported a 129 per cent year-on-year rise in net profit to Rs 128 million for Q1 FY27, compared with the corresponding quarter last year.Revenue increased 135 per cent year-on-year to Rs 2.71 billion, supported by continued momentum across its services business, disciplined execution and contributions from domestic and international operations. EBITDA grew 81 per cent year-on-year during the quarter.As of June 30, 2026, the company’s standalone order book stood at Rs 17.54 billion, with around 60 per cent coming from oil and gas services and 40 per cent from min..

Next Story
Infrastructure Urban

BioBTX to Build First Commercial-Scale Circular Chemicals Plant

Dutch circular chemistry technology developer BioBTX is building what it says will be the world’s first commercial-scale plant to convert mixed plastic waste into high-quality aromatic chemicals using its proprietary Integrated Catalytic Cracking Process (ICCP) technology.The facility will be built at Chemical Park Delfzijl on the northern coast of the Netherlands and is expected to create 35 jobs. Covestro, which has been a shareholder and strategic partner of BioBTX since 2024, holds a mid-single-digit million-euro investment in the company.BioBTX’s ICCP technology uses catalytic pyrolys..

Next Story
Real Estate

Awfis Q1 FY27 PAT Jumps 140% as Revenue Rises 27%

Awfis Space Solutions reported a 140 per cent year-on-year rise in consolidated profit after tax (PAT) to Rs 240 million for Q1 FY27, compared with Rs 100 million in the corresponding quarter last year.Revenue from operations increased 27 per cent to Rs 4.25 billion from Rs 3.35 billion, while EBITDA rose 28 per cent to Rs 1.62 billion. EBITDA margin improved to 38.2 per cent from 37.8 per cent. Profit before tax increased 135 per cent to Rs 240 million.The company's co-working business recorded 27 per cent year-on-year growth, supported by demand from enterprises, Global Capability Centres (G..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement