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Will the US's 126% solar duty hit Indian exporters? Experts explain

US imposes initial 126% duty on certain solar imports from India, raising industry concerns.However, leading companies say the immediate impact on their exports and operations remains limited due to diversified supply chains and local manufacturing strategies.

Gyanesh Chaudhary of Vikram Solar, said the duty mainly affects solar cells, not necessarily finished panels exported from India. “There is a clarification on the duty… it’s mostly limited around solar cell, whether assembled or not. As a large manufacturer and exporter, we don’t necessarily see Indian domestic cells being used in solar panels exported to the US, so the impact on Vikram Solar is nil, so to speak,” he said.

Waaree Group’s Abhishek Pareek, said the company has already built a flexible supply chain to manage such trade changes. “This announcement is around solar cell manufacturing… but our strategy has been to source solar cells from markets that are acceptable in the US. We either assemble panels in India using those cells or manufacture panels in our US facilities. So this impact does not really come to us,” he explained. Waaree is also expanding its US manufacturing capacity to meet local demand.

Market expert Shahina Mukadam said the impact may vary between companies. “Waaree may be impacted to some extent temporarily, but they are building capacity in the US which could offset it. Vikram Solar valuations are attractive, but investors should be cautious in the near term as sentiment remains weak,” she said.

She added that India’s renewable energy sector continues to see strong long-term demand despite global trade tensions.

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