India's largest manufacturer of solar modules is urging the government to reintroduce trade barriers to shield it from competition from countries like China and Vietnam. The temporary relaxation of a safeguard mechanism, which allowed a list of approved solar makers in March, led to a flood of cheap imports, causing local manufacturers to scale back production, according to Hitesh Doshi, Chairman of Waaree Energies Ltd. He emphasised the need for reinstating the "Approved List of Models and Manufacturers," a non-tariff barrier controlling solar makers entering the Indian market. Doshi stated, “We are urging the government to reinstate it.”

During the pandemic, delays prompted calls for India’s solar sector to diversify its supply chains. The government is now trying to strike a balance, curbing cheap imports to boost domestic manufacturing while ensuring local companies can meet demand.

Doshi argued that import duties are ineffective because key solar exporters like Vietnam have free-trade agreements with India, and Chinese suppliers have lowered prices to remain competitive, despite the earlier 40% import tax. Despite steep taxes imposed on foreign-bought cells and modules in 2022 and government funds amounting to 240 billion rupees ($2.9 billion) to support local output, imports from April through August surged almost sevenfold compared to the same period the previous year, as reported by a media house.

Waaree, based in Mumbai, has 12 gigawatts of module capacity in India, with 5.4 gigawatts of cell manufacturing infrastructure in progress. The company is also constructing a 2 gigawatt module factory in the US, set to commence operations by April 2024.

Additionally, Waaree is in discussions for a public offering, with details expected to be finalised by the end of the month. According to reports, the company aims to raise $350 million at a valuation of $3 billion.