U.S. Trade Action Deals Blow to Indian Solar Makers

Analysts and representatives of the industry said that India's plans for strengthening its?position on the U.S. Solar market have been stymied by Washington's decision to impose steep anti-dumping duties?on solar panels and cells?shipped primarily from a few?Asian hubs. U.S. Commerce Department determined on Tuesday that manufacturers in India, Indonesia, and Laos received wide-ranging support from the government that distorted competition in some of the most attractive markets for clean energy. Indian exporters are facing a 126% duty on their products to the U.S., as New Delhi is wooing solar companies to invest in India and positions itself as a viable alternative to China. As of 0449 GMT, Wednesday, shares of India's largest solar panel manufacturer,?Waaree Energies, fell 10%. Premier Energies, Vikram, and Vikram Solar also suffered losses of 5%, and 4% respectively.

Rajan Kalsotra is a Senior Consultant with EUPD Research. He said that the preliminary U.S. anti-dumping duties were a "major setback" for Indian solar manufacturers who heavily depended on exports to U.S. markets. Analysts warn of the possibility that Indian module manufacturers will push their stock onto the domestic market due to the lack viable export markets. This could lead to an oversupply. India's module production capacity has been expanded to 160 gigawatts (GW) by January 2026. Additional capacity is planned. Near-term, domestic demand will remain at 40 to 45 GW per year, according to the EUPD.

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The ruling is "only the first of many steps in a larger trade action that was initiated last year by an American group of solar manufacturers. Separately, another decision is due next month. It will determine if exporters from the three countries have also cut prices below production costs - which could lead to a new round of anti-dumping sanctions. (Reporting and editing by Stephen Coates; Sethuraman N.R.)

(source: Reuters)