In December, news reports indicated that the ministry of new and renewable energy had proposed a 20% basic customs duty (BCD) on solar module and cell imports. Fast forward three months, that has gone up to a proposed duty of 40% on solar photo-voltaic (PV) modules and 25% on solar photo-voltaic cells from April 2022. There is an existing safeguard duty which was first imposed in 2018. That is expiring in July.
One of the usual objections, i.e. that India’s duties can be contested in the World Trade Organisation (WTO), is easily addressed. WTO takes a long time to adjudicate. The judgements can be appealed. Both the Trump and the Biden administrations in the US have refused to appoint appellate judges to the WTO. Of course, the flip side is that it means that India’s import duties can be met with export duties on the part of China.
Hi! You've read all your free articles To Continue Reading,
Articles by celebrated columnists
A differentiated perspective
The best of Wall Street Journal