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Sources say that India is consideringhalving the import tax on photovoltaic panels and lowering the commodity andservice tax on photovoltaic products to make up for the shortage of localproduction capacity and meet the growing demand for renewable energy.

In April 2022, India imposed a 40% tariffon imported photovoltaic panels and a 25% tariff on photovoltaic cells to curbimports from China. Indian Prime Minister Modi hopes to strengthen thecountry's autonomy in renewable energy.

However, a source said that India'sdomestic production capacity is lagging and needs to be imported to fill thegap.

According to three government sources citedby Reuters, the Indian Ministry of Renewable Energy has held consultations withthe Ministry of Finance to approve its request to reduce the import tax onphotovoltaic panels by a range of 40% to 20%. This decision has not yet beenfinalized. In addition, sources said that these two ministries may alsorecommend to the Indian Goods and Services Tax Commission to reduce the Goodsand Services Tax (GST) on photovoltaic panels by a range of 12% to 5% from2021.

Modi hopes to achieve the goal ofinstalling 365 megawatts of photovoltaic energy between 2031 and 2032. India ispromoting a series of green energy movements from electric vehicles tosustainable aviation fuels.

A government official stated that India'simport of photovoltaic panels in the next two years is expected to be nearly8-10 megawatts per year.

Government data shows that from 2021 to2022, India imported $3 billion worth of photovoltaic panels, of which 92% camefrom China. According to sources, the tax reduction measures are expected toreduce the cost of imported photovoltaic panels by one fifth, thus approachingthe prices of locally produced products in India.

Since the establishment, MULTIFIT Solar hasbeen paying close attention to the policy and regulatory changes in the Asianmarket. The Indian region has a large market with a large number of largecustomer groups and high market demand. Faced with the possible policy andregulatory adjustments made by the Indian government, MULTIFIT will activelyadjust to cope with the changes. In addition, in order to give back to thelocal market, MULTIFIT is also expected to introduce a series of correspondingpreferential policies, allowing customers to enjoy real benefits.

MULTIFIT will seize this opportunity andcontribute to India's goal of achieving photovoltaic installation capacity by2032. At the same time, MULTIFIT will work with photovoltaic power generationcompanies to provide high-quality and efficient clean energy products, betterleverage the role of photovoltaic power generation in the future energytransformation of green energy electricity, and promote the early realizationof the global vision of carbon neutrality.

Since the establishment in 2009, MULTIFIThas always adhered to and implemented the goal of enjoying sunshine andbenefiting thousands of households. We have provided one-stop solar systeminstallation services to customers in many countries, including initialconsultation, project survey, scheme design, engineering installation andoperation maintenance. Choose MULTIFIT to help you easily achieve your goal ofinstalling a solar system!