India to investigate Chinese involvement in surge of Ethiopian solar-cell imports

The Story in Brief

India’s renewable energy ministry has asked the finance and commerce ministries to examine a steep rise in solar photovoltaic (PV) cell imports from Ethiopia, suspecting that low-priced goods linked to Chinese manufacturing may be entering India. Commerce ministry data show Ethiopian PV cell imports rose from nil to $202 million in 2025-26, making up 81% of India’s $248.51 million imports from Ethiopia that year; overall bilateral trade was $686.67 million. In the current fiscal year through May, Ethiopian PV cell imports were $29.63 million.

The MNRE has raised concerns that imports could be circumventing trade rules through free trade agreements or least developed country benefits that affect basic customs duty. India imposed a 20% basic customs duty on imported solar cells and modules in February 2025 and maintains an Approved List of Models and Manufacturers; some imports can be exempted under the Advance Authorisation Scheme. Ethiopia has expanded manufacturing attracted by cheap hydroelectric power and low labour costs, and the US has launched a related inquiry into Ethiopian-origin solar shipments.

The Indian Opinion

The reporting highlights two reasonable responses: probe possible circumvention and continue building domestic capacity. Some commentary in the article frames the surge as a deliberate Chinese manoeuvre; that is a plausible concern given global trade patterns, but it remains unproven here. Data show rapid growth in Ethiopian exports and ongoing Chinese-origin imports to India, yet investigations are still under way in India and the US. An ordinary Indian reader should note that sudden trade shifts can result from genuine new investment, tariff-driven relocation, or limited processing before export. It is sensible to await outcomes of official inquiries and to press for clearer rules of origin alongside efforts to strengthen domestic manufacturing.

Original article: India to probe Chinese link in solar-cell import surge from Ethiopia (www.livemint.com)

This story was summarised and commented on by AI from the source linked above.