India to impose tariff barrier on solar cells, modules, inverters

India is set to impose a basic customs duty as soon as the safeguard duty, currently in place, expires on 29 July. To impose this 20% tariff barrier on imports of green energy equipment, the ministry of new and renewable energy will soon write to the ministry of commerce and industry.

Daily Current Affairs Quiz 2020

Key-Points

India imported $2.16 billion worth of solar photovoltaic (PV) cells, panels, and modules in 2018-19.

India currently has a domestic manufacturing capacity of 3 GW for solar cells and recently awarded a manufacturing-linked solar contract.

Modules account for nearly 60% of a solar power project’s total cost.

Clean energy projects now account for more than a fifth of India’s installed power generation capacity.

India is also looking to play a larger role in global supply chains in the backdrop of the disruption caused by the coronavirus that originated in Wuhan, China.

China remains India’s second largest trading partner after the US. India’s exports to China rose 3.8% to $17.1 billion in 2019 while imports contracted 7.5% to $68.3 billion during the same year.

The widening bilateral trade deficit with China has remained a cause of concern for India.