DGTR Recommends Continued Countervailing Duties On Imported Solar Glass From Malaysia

The Directorate General of Trade Remedies (DGTR) has recommended extending countervailing duties on imports of solar glass from Malaysia for another five years, citing continued subsidisation and the risk of renewed injury to domestic manufacturers if the measures are withdrawn.

In its final findings, India’s trade remedies authority concluded that imports of textured tempered glass (solar glass), widely used in solar modules, continue to benefit from countervailable subsidies in Malaysia and could harm India’s domestic industry if duties expire.

Borosil & Vishaka Petition 

The review was initiated after domestic manufacturers Borosil Renewables Limited and Vishakha Glass Pvt. Ltd. sought a sunset review of the existing countervailing duties, which were originally imposed in March 2021 following an anti-subsidy investigation launched in September 2019. The current duties are scheduled to expire on June 8, 2026.

The companies argued that the removal of duties would likely lead to continued or renewed subsidised imports from Malaysia, hurting domestic producers. They cited several subsidy schemes allegedly benefiting Malaysian exporters, including subsidised natural gas, tax incentives such as Pioneer Status and Investment Tax Allowances, and regional fiscal incentives.

Close Links With China 

According to the petitioners, Malaysian exporters maintain close links with Chinese producers, including Xinyi Solar and Kibing Group, allowing production and exports to shift between Malaysia, China and Vietnam depending on where trade remedial measures are in place. The domestic industry also claimed that subsidised imports were priced below their cost of sales, resulting in cash losses and negative returns.

The DGTR initiated the sunset review on June 24, 2025. The period of investigation covered January 1 to December 31, 2024. Stakeholders participating in the probe included the Government of Malaysia, exporters such as Xinyi Solar and SBH Kibing, and Indian users and importers including Reliance Industries and Navitas Green Solutions.

The authority conducted both on-site and desk verification of submitted data and held oral hearings on October 28 and December 4, 2025 before reaching its conclusions.

Export Pressure On India

The DGTR found that several Malaysian programs—including the supply of natural gas at less than adequate remuneration, sales tax exemptions and investment tax allowances—constitute countervailable subsidies. It also noted that significant capacity additions in Malaysia could increase export pressure on India if duties are removed.

In its final recommendation, the authority proposed extending the existing countervailing duties for another five years. The duty rate would remain at 9.71% for Xinyi Solar and would also apply to Kibing Group, which cooperated in the review investigation and was granted an individual rate. Imports from all other producers would continue to attract a duty of 10.14%.

The DGTR said the domestic industry remains vulnerable and that the continuation of duties is necessary to prevent the recurrence of injury from subsidised imports. The final decision on imposing or extending the duties will be taken by the Indian government.

Source: Solar Trail Blazers