Archive · 9 Dec 2025
India considers cutting steel duty to boost wind power manufacturing
India wants to make wind turbines locally.
Right now, it's cheaper to import gearboxes for these turbines because the steel needed to make them costs more in India.
The government is thinking about lowering the tax on this special steel to make local gearboxes cheaper.
This could help India make more wind turbine parts at home and sell them to other countries.
Some people worry that if the tax is lowered too much, too much steel might be imported, which could be bad for local steel makers.
The government is also giving money to companies that make this special steel to help them grow.
India proposes lowering 15% customs duty on specialty steel for wind turbine gearboxes to boost domestic manufacturing.
Current inverted duty structure makes imported gearboxes cheaper than locally produced ones.
About 60% of gearboxes in India's wind power sector are currently imported.
Government mandates increased localization of wind turbine components to reduce import dependence.
Proposed duty cut coincides with PLI scheme to develop specialty steel sector in India.
- Who
- Indian Ministry of New and Renewable Energy, gearbox manufacturers, wind turbine makers
- What
- Proposal to lower customs duty on specialty steel used in wind turbine gearboxes
- When
- Proposal for upcoming Union Budget, PLI scheme disbursal from FY27
- Where
- India
- Why
- To correct inverted duty structure, boost domestic manufacturing, and reduce import dependence
- Current import duty on specialty steel
- 15%
- Current import duty on gearboxes
- 7.5%
- Percentage of gearboxes imported
- 60%
- Gearbox cost as percentage of wind turbine
- 12%
- India's gearbox manufacturing capacity
- 8GW (as of March 2024)
- India's annual wind turbine production capacity
- Over 17GW
- Proposed duty cut impact on tower cost
- 5-7% reduction
- PLI scheme incentive rates for specialty steel
- 4% to 15%