India's copper industry is seeking stronger import protection for components used in solar photovoltaic module manufacturing, bringing attention to a supply-chain issue within the country's expanding renewable energy sector. The Indian Primary Copper Producers Association (IPCPA) has asked the government to double the basic customs duty on solar PV ribbons and busbars from 5% to 10% in its pre-Budget representation for FY2027-28. The proposal aims to improve the competitiveness of Indian manufacturers facing pressure from imported products, particularly those sourced from China. The request is a recommendation from the industry association, not an announced government policy change.
A key concern raised by the association is the gap between domestic manufacturing capacity and actual production utilization. India has an estimated annual manufacturing capacity of 30,000 tonnes for solar PV ribbons and busbars, against demand of approximately 25,000 to 28,000 tonnes. Despite domestic capacity being broadly sufficient to meet this demand, manufacturers say imports are affecting their ability to use existing facilities effectively. Raising the duty on imported components is intended to improve the position of domestic suppliers in the Indian market.
Solar ribbons and busbars are electrically conductive components that connect solar cells and collect the electricity they generate within a photovoltaic module. Their quality and electrical performance influence current collection, resistive losses and the reliability of module interconnections. Although they represent only one part of a solar panel's bill of materials, the availability and cost of these components can affect manufacturers' sourcing decisions and production economics. A change in import duties could therefore influence procurement strategies across the domestic solar module supply chain.
The association has also called for retaining the existing 5% basic customs duty on refined copper and copper semi-finished products, alongside the 7.5% duty on copper pipes and tubes. It has requested that these rates continue without reductions, exemptions or additional concessions under free trade agreements. This distinction is important: the proposal seeks a higher duty on specified solar PV components while maintaining the existing tariff treatment for other copper product categories.
The proposal comes amid India's broader effort to strengthen domestic solar manufacturing and reduce reliance on imported equipment and materials. The Ministry of New and Renewable Energy has expanded the Approved List of Models and Manufacturers framework to cover additional stages of the solar supply chain. From June 1, 2028, the planned inclusion of solar ingots and wafers under ALMM List-III is intended to deepen domestic manufacturing, subject to the framework's specified conditions. These measures address different parts of the supply chain, while the copper industry's proposal focuses specifically on the customs treatment of conductive components used in solar modules.
The potential impact of higher duties will depend on how import prices, domestic production costs and manufacturers' purchasing arrangements respond. Domestic copper-component producers could benefit from improved price competitiveness, while solar module manufacturers may face higher input costs if imported products become more expensive and local alternatives cannot match their prices, specifications or supply requirements. The effect on overall module costs would depend on the scale of the duty change and the proportion of component costs passed through to buyers.
The government's decision will consequently involve balancing the development of domestic copper-component manufacturing against the cost competitiveness of India's solar module industry. With domestic capacity reportedly exceeding current demand for solar ribbons and busbars, the central question is whether tariff protection can translate into higher factory utilization, stronger investment and more competitive local production without unnecessarily increasing costs for downstream manufacturers. The association's recommendation places this balance before policymakers as preparations continue for the FY2027-28 Union Budget.