Indian solar stocks fell sharply after the United States announced a heavy 126% countervailing duty on solar imports from India.
Shares of Waaree Energies dropped nearly 15% in early trading. Premier Energies fell more than 12%, while Vikram Solar also declined. Investors reacted strongly because the US is an important export market for several Indian solar companies.
According to reports, the United States Department of Commerce announced anti-subsidy duties on solar cells and panels imported from India, Indonesia, and Laos. The general subsidy rate for India has been set at 125.87%. The US government believes that companies in these countries received subsidies that made their products cheaper and less competitive for American manufacturers.
The three countries together accounted for about $4.5 billion worth of solar imports into the US last year. This makes the decision significant for exporters.
Waaree Energies is especially in focus because the US is a key market for the company. However, it also operates a manufacturing plant in the US through its subsidiary, which may help reduce some impact. Vikram Solar and Premier Energies are also major solar module and cell manufacturers, though Premier has relatively smaller exposure to the US market.
This move is part of a long-running trade dispute. Over the past decade, the US has imposed several duties on low-cost solar imports from Asian countries. Earlier tariff actions had already reduced imports from countries like Malaysia, Vietnam, Thailand, and Cambodia.
The US Commerce Department is expected to announce another decision next month on whether these companies were selling solar products in the US at prices lower than their production costs.
For now, Indian solar stocks remain under pressure as investors assess the possible impact of the new duties.
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