India hits U.S., China with solar imports anti-dumping duties

NEW DELHI Fri May 23, 2014 9:37pm IST

A worker inspects solar panels at a solar Dunhuang, 950km (590 miles) northwest of Lanzhou, Gansu Province September 16, 2013. REUTERS/Carlos Barria/Files

A worker inspects solar panels at a solar Dunhuang, 950km (590 miles) northwest of Lanzhou, Gansu Province September 16, 2013.

Credit: Reuters/Carlos Barria/Files

Related Topics

NEW DELHI (Reuters) - India will impose anti-dumping duties on solar panels imported from the United States, China, Taiwan and Malaysia to protect domestic solar manufacturers, according to a government statement seen by Reuters on Friday.

The order, almost certain to anger India's trading partners, sets duties of between 11 and 81 U.S. cents per watt and comes after a investigation which started in 2011. The ruling by a quasi-judicial body has to be published by the Finance Ministry before it takes effect.

The decision adds to India's growing trade disputes just before Narendra Modi takes office as prime minister on Monday.

"Imposition of anti-dumping measures would remove the unfair advantages gained by dumping practices," said India's Anti-Dumping Authority in its order released on Thursday.

Local manufacturers have long complained that U.S., Chinese and Malaysian companies enjoy state subsidies and are selling their products at artificially low prices to capture the Indian market.

India also believes that anti-dumping duties imposed on Chinese solar producers by the European Union and the United States have further driven down the price of Chinese solar products, to the detriment of Indian suppliers.

India aims to raise its solar power capacity to 20,000 MW by 2022 from 1,700 MW currently. It imported solar products worth nearly 60 billion rupees ($1.03 billion) last year, according to an industry estimate. Domestic manufacturers got less than 2 percent of that business.

"India's solar manufacturing is now bound to revive and further increase with both local and overseas participation ensuring a robust supply chain," said H.R. Gupta of the Indian Solar Manufacturers' Association.

Under the new duties, importers will have to bear additional costs of between 5 percent and 110 percent while importing solar cells and panels from the United States, Malaysia and China.

The U.S. Trade Representative has filed two cases against India at the World Trade Organisation (WTO), complaining local content rules discriminate against U.S. solar companies.

A senior USTR official said the United States would look carefully at the new duties given the importance of the U.S. solar industry.

($1 = 58.5050 rupees)

(Additional reporting by Krista Hughes in Washington; Editing by G Crosse, Frank Jack Daniel and Ron Popeski)

FILED UNDER:

"India's Daughter"

Reuters Showcase

Microfinance

Microfinance

Funding the unfunded: India helps small business borrow to grow  Full Article 

Insurance Sector

Insurance Sector

UK healthcare firm Bupa sees strong growth in India  Full Article 

Sensex Rises

Sensex Rises

Sensex edges up; consumer and healthcare stocks rise  Full Article 

Market Eye

Market Eye

FTSE adds nine Indian firms as large-caps in Asia-Pacific ex-Japan index   Full Article 

Indian Ocean Diplomacy

Indian Ocean Diplomacy

PM Modi to ramp up help for Indian Ocean nations to counter China influence  Full Article 

ECB Bond-Buying

ECB Bond-Buying

ECB raises growth forecasts, to start printing money next week  Full Article 

China Economy

China Economy

China signals "new normal" with lower annual growth target  Full Article 

Pharma Sector

Pharma Sector

Panel recommends waiving late-stage trials for some drugs  Full Article 

E-commerce

E-commerce

China backs e-commerce expansion in win for Alibaba, JD.com  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage