India has offered key incentives to exporters to tap the growing demand for clean energy equipment and non-polluting electric vehicles in overseas market, which would help it overcome the rising trade deficit.
The commerce ministry has identified a total of 16 green products including solar power equipment for export promotion after a mid-term review of its 2009-14 foreign trade policy. The list also includes equipment like windmills, bio-mass gassifier, waste boiler as well as electric vehicles. The ministry has reduced export obligation for manufacturing of these products to 75% under EPCG (Export Promotion Capital Goods) Scheme.
This comes at a time when the Indian manufacturers of clean energy equipment are sensing opportunities for themselves in the export market as several countries in Latin America and Africa go for big capacity addition in clean energy. Meanwhile, Chinese solar equipment suppliers have been shut out of the lucrative US market owing to imposition of anti-dumping duty. Significantly, Indian clean energy equipment suppliers have been eying the export for a while. But they have been unable to make much of a dent in the absence of trade incentives. Tough Chinese competition made their task even more difficult.
?Markets are opening up in Latin America and Africa. We can access these markets,? said Prashanth Sakhamuri, chairman, HHV Solar Technology, a Bangalore-based solar equipment manufacturer.
India has envisaged to add 20,000 mw capacity under the Jawaharlal Nehru National Solar Mission. To meet equipment requirement for the envisaged capacity addition, it has favoured development of a domestic manufacturing capacity rather than rely on imports.
India has a well-established industry for windmills. A large domestic market has contributed to the emergence of a globally competitive Indian wind turbine industry.
Manufacturers like Suzlon are key players in the overseas market. Now India wants to replicate wind equipment success in other renewable energy segments.
