America has announced to impose a tariff of 125.87 percent on the import of some Indian solar products, accusing India of giving unfair subsidies. The US has also announced different duty rates on crystalline silicon photovoltaic cells imported from Indonesia and Laos, whether assembled into modules or not. According to the US order, on February 24, 2026, the US Department of Commerce announced its preliminary findings in a countervailing duty investigation concerning crystalline silicon photovoltaic cells, whether or not assembled into modules (solar cells), from India, Indonesia and the Lao People’s Democratic Republic (Laos). These charges are in addition to the 10 percent duty announced by the US administration on all countries from February 24. According to the order, solar imports from India to America will increase from US $ 83.8 million in 2022 to $ 792.6 million in 2024.
World’s third largest producer
The order said that if it is not postponed, the final decisions of these Reimbursement Fee (CVD) investigations will be issued on July 6, 2026. The Department of Commerce is also conducting a parallel antidumping investigation into solar cells from India, Indonesia and Laos. Tariffs help protect companies from subsidized imports. India is taking several steps to encourage renewable energy production in the country and reduce dependence on imports. In this, solar energy has emerged as a major sector. India is currently the third largest solar energy producing country in the world. According to the official statement, India’s solar manufacturing sector includes key components such as solar modules, solar PV (photo-voltaic) cells, ingots and wafers. Their production within the country supports the domestic economy and reduces dependence on imports.
Government had brought PLI scheme
To promote domestic manufacturing, the government has made it mandatory to use panels and cells made in India in projects under schemes like Rooftop Solar Programme, Pradhan Mantri Kisan Urja Suraksha and Utthan Mahabhiyan (PM-KUSUM) Scheme and CPSU Scheme (Second-Phase). India had imposed basic customs duty on imported solar cells and modules in April 2022 to reduce imports, encourage local manufacturing and reduce dependence on foreign suppliers. Under the Production Linked Incentive (PLI) Scheme for Manufacturing of High Capacity Solar PV Modules, Contract Letters have been issued for setting up approximately 48.3 GW of fully/partially integrated solar PV module manufacturing units in the country.
Imports also decreased
Under this scheme, so far about 26.6 GW solar PV modules, 10.5 GW solar PV cells and about 2 GW ingot-wafer manufacturing capacity have been installed. Apart from this, 55 solar parks with a total capacity of 39,973 MW have also been approved under the scheme. Import of solar modules in India declined to US $ 2.15 billion in 2024-25 from $ 4.35 billion in 2023-24. Imports from China also declined to $1.7 billion in the last financial year, which was $2.85 billion in 2023-24. Other countries from which India imports include Vietnam, Hong Kong, Malaysia and Singapore.