Now Reading: India probes Ethiopian solar imports as exporters seek European market
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India probes Ethiopian solar imports as exporters seek European market
India probes Ethiopian solar imports as exporters seek European market
India is examining whether Chinese-linked solar cells are entering through Ethiopia to avoid Indian trade barriers. Imports from Ethiopia rose from zero to $202 million in 2025-26, with solar cells accounting for…
The Story in Brief
India is examining whether Chinese-linked solar cells are entering through Ethiopia to avoid Indian trade barriers. Imports from Ethiopia rose from zero to $202 million in 2025-26, with solar cells accounting for 81% of India’s total imports from the country, Livemint reports. The renewable energy ministry has asked the finance and commerce ministries to check possible violations of country-of-origin rules and duty exemptions. The US has also opened a similar inquiry into Ethiopian solar products using Chinese components.
Indian manufacturers are meanwhile targeting Europe as US tariffs slow shipments. The opportunity depends partly on a proposed India-EU free trade agreement and European efforts to reduce dependence on China. Chinese panels remain up to 30% cheaper than Indian products in Europe, while India’s module exports reached $2 billion in FY24, mainly to the US.
The Indian Opinion
The lazy version is that every Ethiopian shipment is Chinese dumping, or that Europe offers India an easy 50 GW prize. Neither is established. A sharp import surge deserves checks, but Ethiopia may also have added genuine capacity using cheap power and labour. Indian exporters still face a clear price gap and uncertain European rules. The useful test is simple: can investigators verify local value addition, and can Indian firms win European orders without permanent tariff protection?
Sources (2): livemint.com, livemint.com (2)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
