Saturday, August 02, 2014: Even as the Finance Ministry of India is considering the Director General of Anti Dumping’s recommendation that Anti Dumping Duty (ADD) upto $0.81 (Rs 48.6 per Watt) be imposed on imports from Malaysia, the US, Taiwan and China, a new report by KPMG suggests that the country could save itself $42 billion if it curtails solar equipment imports. In a study for the Indian Solar Manufacturers Association, KPMG has advised India to instead focus on reviving domestic solar manufacturers into a viable industry.
“Indian manufacturing is competitive but suffers due to a lack of incentives when compared to other nations,” KPMG said in its report. The report cites countries like China and the US where government financing, tax benefits and anti-dumping duties have boosted local industry sentiments therefore leading to a highly productive domestic environment. According to the report the country is expected to install as much as 100 gigawatts of solar capacity by the year 2030.
The report warns that if India does not build a favourable manufacturing base as far as solar equipments are concerned, it would eventually witness downfall much like the electronics industry here. Over 60 per cent of domestic demand for electronics are met through imports, suggests the report and the solar industry is moving more or less on the same path. “The industry was not given due importance during early stages of its evolution. It has become very costly and difficult for India to catch up.” said the report.
