Solar manufacturers seek duty on imported ingots, wafers

The Indian Solar Manufacturers Association (ISMA) is urging the government to impose safeguard duties on key solar imports and provide incentives to strengthen domestic manufacturing. These measures aim to reduce reliance on China and support India’s 2070 net-zero goal. India is already self-sufficient in solar module production and is expected to achieve self-sufficiency in solar cell manufacturing by FY27.

Image credit: Pexels

The Indian Solar Manufacturers Association (ISMA) has urged the government to impose safeguard duties on imports of polysilicon, ingots, and wafers to protect the domestic solar manufacturing sector from dumping and to boost local capabilities. These components form the upstream part of the solar photovoltaic (PV) value chain, with polysilicon being a key raw material converted into ingots, wafers, and eventually solar cells.

India is already self-sufficient in module manufacturing, supported by existing duty protection measures, and is expected to achieve self-sufficiency in solar cell production by FY27. However, the country still relies heavily on imports for upstream components like polysilicon and wafers. ISMA stresses the importance of developing a robust domestic supply chain to reduce import dependence and enhance energy security.

To support this, ISMA has recommended a series of policy measures including: exemption of import duties on capital goods, equipment, and raw materials for manufacturing polysilicon, ingots, and wafers; a clearly defined roadmap for duty protection on these imports; and timelines for including upstream components in the Approved List of Models and Manufacturers (ALMM), mandating their use in downstream production.

ISMA has also called for the government to launch the next round of CPSU (Central Public Sector Undertaking) projects to create demand for domestically produced wafers and polysilicon, alongside a capital subsidy program, lower interest rates, dedicated funds, and tax benefits for new manufacturing units. It recommends establishing specialized PV manufacturing clusters on government-acquired land to streamline logistics and supply chains.

To strengthen long-term growth, ISMA emphasized the need for predictable policies, faster regulatory approvals, fiscal incentives for cleantech R&D, and stronger industry-academia partnerships. It also advocated for enhancing free trade agreements (FTAs), securing raw mineral supplies, and promoting technology licensing with global leaders to build indigenous capabilities. These measures are vital for achieving India’s goal of becoming net carbon zero by 2070.