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India to Tax Solar Equipment Imports to Help Local Companies

  • Plans to levy 40% duty on solar modules from April 2022
  • Nation wants to have 280 gigawatts of solar capacity by 2030
India is planning to expand its renewable power capacity fivefold to 450 gigawatts by 2030.

India is planning to expand its renewable power capacity fivefold to 450 gigawatts by 2030.

Photographer: Prashanth Vishwanathan/Bloomberg

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India will levy a 40% customs tax on imports of solar modules from April next year to cut dependence on foreign supplies and boost domestic manufacturing of the equipment, the renewable energy ministry said.

The finance ministry has approved the proposal, which also includes a 25% customs duty on imports of solar cells, the ministry said in a note published on its website. It didn’t mention for how long the taxes will apply.