US Detains $43 Million in Indian Solar Panel Shipments

Summary: In August 2024, the US detained $43 million worth of Indian solar panels due to the Uyghur Forced Labour Prevention Act (UFLPA), which targets imports linked to forced labor in Xinjiang, China. India, while self-sufficient in solar module production, still imports significant components from China. Government initiatives, such as the Production Linked Incentive (PLI) scheme, aim to reduce reliance on imports. However, India faces challenges in scaling up domestic solar cell production. Negotiating sector-specific exemptions from UFLPA could help ease trade with the US while navigating compliance issues.

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