DGTR Recommends Extending Duties on Malaysian Solar Glass Imports for Five Years

India’s Directorate General of Trade Remedies (DGTR) has recommended the continuation of countervailing duties (CVD) on imports of textured tempered glass used in solar modules from Malaysia for a further period of five years, following the completion of a sunset review investigation.

The authority concluded that subsidised imports from Malaysia are likely to continue and could cause injury to the domestic industry if the duties are allowed to lapse.

The investigation examined subsidies allegedly provided by the Government of Malaysia to solar glass producers exporting to India. The DGTR identified several countervailable subsidy programmes benefiting exporters, including investment tax allowances, sales tax exemptions, licensed manufacturing warehouse benefits, subsidised natural gas, and duty exemptions on imported machinery. Two key exporters, Xinyi Solar and SBH Kibing Solar New Materials, were analysed in detail, and the authority determined that the subsidy margins for cooperating producers fall in the range of up to 10 percent.

According to the findings, India’s domestic solar glass manufacturers, including Borosil Renewables and Vishakha Glass, continue to experience material injury despite strong growth in the solar power sector. The DGTR observed significant price undercutting by Malaysian imports, with imported glass priced 30–40 percent lower than domestic products during the period of investigation. This pricing pressure prevented domestic producers from increasing prices to sustainable levels, leading to cash losses and negative returns on investment.

The authority also noted that although overall demand for solar glass in India has grown substantially, the domestic industry’s market share has not increased proportionately. Instead, imports, mainly from China, Vietnam, and increasingly Malaysia, have captured a significant share of the expanding market. As a result, domestic producers have struggled to fully benefit from the rapid expansion of India’s solar power sector.

A key concern highlighted in the review was the sharp surge in imports from Malaysia following the imposition of provisional anti-dumping duties on solar glass imports from China and Vietnam in December 2024. Imports from Malaysia increased dramatically, rising from around 18,916 metric tonnes during the January–December 2024 investigation period to 164,380 metric tonnes in just the first three months of 2025. The DGTR stated that this surge indicates exporters have the capacity and incentive to redirect shipments to India when other markets face restrictions.

The authority further noted that Malaysian exporters have expanded production capacity significantly in recent years, including investments by major global glass manufacturers. With India emerging as one of the fastest-growing solar markets, the DGTR concluded that Malaysian producers would likely continue targeting the Indian market if duties were removed, potentially leading to renewed injury to the domestic industry.

Addressing concerns raised by solar module manufacturers about potential cost increases, the DGTR stated that the impact of the duty on the final price of solar modules would be minimal. The authority estimated that solar glass accounts for about 9.36 percent of the cost of a solar module, meaning a duty of around 10 percent would increase the overall module cost by less than one percent. According to the DGTR, such an impact is relatively insignificant compared with other cost fluctuations in the solar value chain.

In its final recommendation, the DGTR proposed continuing countervailing duties of 9.71 percent on imports from Xinyi Solar and 10.14 percent on imports from SBH Kibing Solar New Materials and other Malaysian exporters. The recommendation has been forwarded to the Ministry of Finance (India), which will take the final decision on imposing the duties through a customs notification.