The Directorate General of Trade Remedies (DGTR) has recommended continuing countervailing duties (CVD) for five years on imports of textured toughened solar glass from Malaysia.

DGTR ruled that the expiry of the existing measure may lead to continuation or recurrence of subsidization and injury to the domestic industry.

Imports from Xinyi Solar (Malaysia) and SBH Kibing Solar New Materials (M) would attract a countervailing duty of 9.71% of the CIF value, while imports from other Malaysian producers would face a duty of 10.14%. The authority has recommended continuing the existing duty structure without modifying the current quantum of duties.

The current countervailing duty was imposed in 2021 and is scheduled to remain in force until June 8, 2026. The sunset review was initiated in June 2025 following an application by Borosil Renewables and Vishakha Glass, which argued that expiry of the duties could lead to continued subsidised imports and renewed injury to domestic manufacturers.

The product under consideration is textured toughened (tempered) glass used in solar photovoltaic modules. The glass typically has a minimum light transmission of 90.5%, thickness not exceeding 4.2 mm, including tolerance, and at least one dimension exceeding 1,500 mm.

It may be coated or uncoated and is commonly referred to as solar glass or low-iron solar glass. DGTR clarified that ‘heat-strengthened glass,’ another name used in market terminology, does not change the scope of the product definition.

During the investigation, DGTR examined subsidy programs available to Malaysian exporters and assessed whether the participating companies benefited from countervailable financial contributions. For Xinyi Solar (Malaysia), DGTR found countervailable benefits under programs including Investment Tax Allowance, Sales Tax Exemption and the Licensed Manufacturing Warehouse program.

For SBH Kibing Solar New Materials (M), the authority identified countervailable benefits linked to natural gas pricing, Investment Tax Allowance, Sales Tax Exemption and exemptions on import duties and sales tax on machinery and equipment.

DGTR also examined several other programs alleged by the domestic industry. While some programs were found to be countervailable in principle, it noted that the investigated exporters had not availed benefits under those programs, while certain other programs were not accepted due to a lack of exporter-specific evidence.

As part of its injury assessment, DGTR found positive price undercutting by Malaysian imports during the injury period. The findings indicate price undercutting in the range of 20–30% in 2021-22, 10–20% in 2022-23, and 30–40% during the period of investigation, exerting downward pressure on domestic selling prices.

DGTR observed that while demand for solar glass in India has increased with the expansion of solar module manufacturing and installations, the domestic industry’s financial performance showed adverse trends in profitability, cash profit and return on capital employed, along with rising inventories. The authority concluded that the domestic industry remained in a vulnerable position.

The investigation also examined the potential impact of duties on downstream users such as solar module manufacturers. DGTR estimated that solar glass accounts for approximately 9.36% of the cost of a 540 Wp solar module, and that even with full pass-through of a 10% duty, the resulting increase in module costs would be about 0.94%, which it considered economically insignificant.

India’s demand for solar glass has grown rapidly in recent years as the country expands solar module manufacturing and installation capacity. While domestic production capacity has also increased, imports have continued to play a role in meeting demand.

DGTR observed that imports from Malaysia gained importance after India imposed duties on solar glass from China and Vietnam, suggesting the possibility of trade diversion. It noted that continuation of the measure would not prohibit imports, which could continue at fair and unsubsidized prices.

The final decision on whether to extend the countervailing duties will be taken by the Ministry of Finance.

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