Indian Solar Giant Calls for Trade Barriers
POWER & RENEWABLE ENERGY

Indian Solar Giant Calls for Trade Barriers

Waaree Energies Ltd., India's largest manufacturer of solar modules, is urging the government to reintroduce trade barriers to shield the domestic solar industry from increasing competition, particularly from China and Vietnam. The temporary relaxation of a safeguard mechanism in March, which allowed cheaper solar imports, has led local manufacturers to curtail production capacity, posing a significant challenge for the industry.

Hitesh Doshi, Chairman of Waaree Energies Ltd., emphasised the necessity of reinstating the "Approved List of Models and Manufacturers," a non-tariff barrier that regulates which solar manufacturers can access the Indian market. Doshi stressed that this is the only viable solution, stating, "We are pleading with the government to bring it back."

Import duties have proven to be ineffective, Doshi argued, because major solar exporters like Vietnam have free-trade agreements with India, while Chinese suppliers have lowered their prices to remain competitive, even in the face of a previously imposed 40% import tax.

Since the government lifted the approved list, solar imports have continued to surge, despite steep taxes imposed on foreign-purchased cells and modules in 2022 and the allocation of 240 billion rupees ($2.9 billion) in government funds to support local production. According to BloombergNEF, imports from April through August increased nearly sevenfold compared to the same period the previous year.

Waaree Energies, headquartered in Mumbai, boasts 12 gigawatts of module manufacturing capacity in India, with an additional 5.4 gigawatts of cell manufacturing infrastructure under development. The company is also in the process of constructing a 2-gigawatt module factory in the United States, expected to begin operations by April 2024.

Furthermore, Waaree Energies is exploring plans for a public offering, with details expected to be finalised by the end of the month. According to reports, the company is seeking to raise $350 million with a potential valuation of $3 billion.

The Indian government faces the challenging task of safeguarding its domestic solar manufacturing sector while maintaining competitiveness and meeting the growing demand for solar products within the country.

Waaree Energies Ltd., India's largest manufacturer of solar modules, is urging the government to reintroduce trade barriers to shield the domestic solar industry from increasing competition, particularly from China and Vietnam. The temporary relaxation of a safeguard mechanism in March, which allowed cheaper solar imports, has led local manufacturers to curtail production capacity, posing a significant challenge for the industry. Hitesh Doshi, Chairman of Waaree Energies Ltd., emphasised the necessity of reinstating the Approved List of Models and Manufacturers, a non-tariff barrier that regulates which solar manufacturers can access the Indian market. Doshi stressed that this is the only viable solution, stating, We are pleading with the government to bring it back. Import duties have proven to be ineffective, Doshi argued, because major solar exporters like Vietnam have free-trade agreements with India, while Chinese suppliers have lowered their prices to remain competitive, even in the face of a previously imposed 40% import tax. Since the government lifted the approved list, solar imports have continued to surge, despite steep taxes imposed on foreign-purchased cells and modules in 2022 and the allocation of 240 billion rupees ($2.9 billion) in government funds to support local production. According to BloombergNEF, imports from April through August increased nearly sevenfold compared to the same period the previous year. Waaree Energies, headquartered in Mumbai, boasts 12 gigawatts of module manufacturing capacity in India, with an additional 5.4 gigawatts of cell manufacturing infrastructure under development. The company is also in the process of constructing a 2-gigawatt module factory in the United States, expected to begin operations by April 2024. Furthermore, Waaree Energies is exploring plans for a public offering, with details expected to be finalised by the end of the month. According to reports, the company is seeking to raise $350 million with a potential valuation of $3 billion. The Indian government faces the challenging task of safeguarding its domestic solar manufacturing sector while maintaining competitiveness and meeting the growing demand for solar products within the country.

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