The US Department of Commerce has imposed a 126 per cent tariff on Indian solar products after two Adani Group companies, Mundra Solar Energy and Mundra Solar PV, withdrew from the investigation proceedings, a preliminary anti-subsidy investigation report reviewed by The Indian Express shows.
The Adani Group companies were ‘mandatory respondents’ in the proceedings, and their non-cooperation triggered ‘Adverse Facts Available’ penalty, the toughest methodology used by the US Department of Commerce. The order dated February 20 has resulted in steep tariffs being slapped on the sector.
A query emailed to the Adani Group by The Indian Express did not elicit a response. A company source claimed the matter was “sub judice”.
The anti-subsidy investigation report stated: “We preliminarily determine that these non-responsive mandatory respondents (i.e., Mundra Solar Energy and Mundra Solar PV) withheld necessary information that Commerce requested, failed to provide information within the established deadlines, and significantly impeded this proceeding by failing to respond to Commerce’s Initial Questionnaire, either in whole or in part, by the applicable deadline.”
The US Department of Commerce concluded that “Mundra Solar Energy and Mundra Solar PV shipped solar cells in ‘massive’ quantities during a relatively short period” and the companies benefited from the Advance Authorisation Program/Advance License Program, Duty Free Import Authorisation Scheme Program, Duty Drawback Program, and Export Promotion of Capital Goods Scheme.
While imposing steep tariffs on Indian solar products, the US Department of Commerce also pointed to India’s high dependency on Chinese imports. “According to information provided by the petitioner, the Indian solar cells industry is heavily reliant on imports from China, and that Chinese investment in India follows the Chinese solar industry’s trend of investments in production facilities in Cambodia, Malaysia, Thailand and Vietnam,” the report stated.
Ajay Srivastava, former trade officer and head of New Delhi-based think tank GTRI, said that after the Adani firms failed to provide complete responses and withdrew from the investigation in November 2025, the case became more punitive.
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“Other Indian manufacturers like Waaree Energies participated as interested parties, but exporters not individually investigated are also currently subject to the same 125.9% preliminary rate. Commerce examined export-linked and duty-remission programmes, including Advance Authorisation, Duty Free Import Authorisation, Duty Drawback, RoDTEP and the Export Promotion Capital Goods Scheme. Because these benefits are tied to export performance, they are particularly vulnerable to countervailing duty findings.”
The document showed that the US Commerce Department initiated the countervailing duty (CVD) investigation on August 6 last year after it received a petition from Alliance for American Solar Manufacturing and Trade, a coalition of US solar manufacturers.
Based on requests by the Indian government and Adani Group companies, the Department of Commerce also amended the period of investigation from January 1, 2024, through December 31, 2024, to April 1, 2024, through March 31, 2025, aligning with the most recently completed Indian fiscal year.
Srivastava said that a significant aspect of the case is the US Department of Commerce’s focus on transnational subsidies. Investigators examined whether key inputs – such as polysilicon, silicon wafers, silver paste, solar glass, aluminium frames and junction boxes – were supplied across borders at below-market prices.
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“Even if India redesigns its incentive programmes, exporters that rely on Chinese inputs may still face countervailing duties,” Srivastava said.
Solar imports from India were valued at $792.6 million in 2024, a more than nine-fold increase compared with 2022 levels, according to the US Commerce Department. Between 2021 and 2024, over 90% of India’s solar photovoltaic module exports were shipped to the US, data from India’s Ministry of Commerce showed.
Ankit Jain, Vice President & Co-Group Head – Corporate Ratings at ICRA Limited, said the proposed duties and regulatory uncertainty in the US are likely to dampen export volumes from India, which stood at around 3 GW in the last calendar year.
“This could potentially exert pricing pressure on domestic OEMs and impact profitability of solar module manufacturers,” Jain said. He cautioned that if export volumes are redirected to the domestic market, pricing pressures could intensify further.
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