While domestic solar installations are growing, domestic manufacturer not able to utilise the opportunity thanks to Chinese competition. From April to October 2016 alone, India imported solar materials worth more than a billion dollars.Solar installations in India has reached 4 GW in 2016 and expected to surpass 9 GW in 2017 as compared to just 883 MW in 2014.Centre wants to ramp up domestic manufacturing to decrease the volume of solar module imports which, along with installations. But the challenge, has been cost competition from Chinese manufacturers, says Mercom Capital.India also lost the World Trade Organization (WTO) ruling last year which decided that its Domestic Content Requirements (DCR) discriminated against US manufacturers.The Indian solar manufacturing sector mainly focused on OEM and exporting to European countries. India had exported almost a billion dollars in modules before the National Solar Mission was established.Exports boomed in 2008 due to global demand, but .
This move to bring about modest decline in import duty on wheat will be a precautionary step
This is because of the foreign exchange reserves improved from $350.3 billion to $360.18 billion in between September 2015 and March 2016