In a move to bolster the domestic solar manufacturing industry, India is set to reintroduce restrictions on imported solar energy modules, following a year-long relaxation of rules. Starting from April 1, imported modules will once again be subject to approval from an approved list of domestic models and manufacturers, effectively barring the use of foreign-made modules in the country.
This decision comes as part of Prime Minister Narendra Modi's initiative to achieve self-sufficiency in the energy sector by promoting local production of solar panels. In line with this goal, India has already imposed import taxes on solar power equipment, and the reinforcement of restrictions on imported modules is another step towards reducing reliance on foreign suppliers.
The temporary relaxation of the "approved list" rules over the past year had led to a surge in imports from countries like China and Vietnam, as domestic capacity struggled to meet the growing demand for solar energy. This surge in imports had a detrimental impact on local module manufacturers, resulting in underutilization of their production capacity and decreased sales volumes.
Ashwani Sehgal, president of the Indian Solar Manufacturers Association, highlighted the adverse effects of the exemption on domestic manufacturers, stating that the reintroduction of restrictions is expected to boost sales volumes and capacity utilization for local companies. With the reimposition of limits on imported modules, the domestic solar industry is set to receive a much-needed boost, paving the way for increased competitiveness and growth in the sector.