U.S. 126% Duty on Indian Solar Imports – WTO Rules, CVD & AD Explained for UPSC
U.S. 126% Duty on Indian Solar Imports
1) Context:
U.S. imposed ~126% duty on Indian solar cells after a preliminary probe found subsidised exports harming U.S. manufacturers; complaint by the Alliance for American Solar Manufacturing and Trade; similar action on Indonesia and Laos.
2) Legal Basis:
Under U.S. trade remedy laws consistent with World Trade Organization rules.
• Countervailing Duty (CVD): Imposed to offset financial subsidies given by a foreign government to its exporters.
• Anti-Dumping Duty (AD): Imposed when goods are exported at prices lower than their normal value (below fair market price).
3) What India Exports:
Solar cells, solar modules (panels), photovoltaic components; ~$1 billion exported to U.S. in FY23.
4) Photovoltaics (PV):
Technology converting sunlight directly into electricity using semiconductors (usually silicon); basic unit = solar cell; cells combine to form modules/panels.
5) Global Export Position:
Top exporters — China (dominant), Vietnam, Malaysia, Thailand; India ranks outside top 10 but is among leading countries in installed solar capacity.








