CEEW-Impact-of-Safeguards-Duty-policy-brief-24Jun19

Executive Summary i

1. Introduction
Under what conditions can countries impose safeguard duties to protect their domestic industries?

1. 2.1  The WTO regime on safeguard duties
2. 2.2  The Indian regime on safeguard duties

3. The road to the imposition of safeguard duties on solar cell and module 7imports in India
4. How have countries used trade barriers to protect their domestic PV 11manufacturing industries?
   1. 4.1  United States of America
   2. 4.2  European Union
   3. 4.3  Canada

5. What plagues Indian solar PV manufacturing? 19

1. 5.1  Inferior terms of debt capital
2. 5.2  Higher electricity prices
3. 5.3  Lower scale of operations
4. 5.4  Lack of vertical integration
5. 5.5  The changing technological landscape
6. 5.6  Demand uncertainty
7. 5.7  Ineffectiveness of existing schemes for promoting manufacturing

6. To what extent does the safeguard duty give protection to the Indian solar 29PV manufacturing story?

1. 6.1  A considerable portion of Indian PV manufacturing capacity does not benefit
2. 6.2  Fall in module prices and longer commissioning timelines limit the

   effectiveness of safeguard duties

7. Can the safeguard duty fulfil the said and unsaid policy objectives? 33

1. 7.1  The duty does not address the causes of the competitive disadvantage associated with Indian PV manufacturing
2. 7.2  Safeguard duty hinders further declines in tariffs
3. 7.3  Negative impact on potential employment generation in solar energy sector
4. 7.4  Effect on investors’ confidence

8. What lies ahead?
9. Conclusions

10. Recommendations