DGTR Recommends Continuing Countervailing Duties On Malaysian Solar Glass Imports To Protect The Indian Industry

India has taken an important step to protect its domestic solar manufacturing industry following the Final Findings issued by the Directorate General of Trade Remedies (DGTR) on March 3, 2026. The investigation focused on the sunset review of countervailing duties on imports of textured tempered glass, commonly known as solar glass, from Malaysia. Solar glass is a critical component used in solar photovoltaic panels and plays a key role in the production of solar modules used in renewable energy projects.

The investigation was initiated after an application was filed by Borosil Renewables Limited and Vishakha Glass Pvt. Ltd., which together represent the domestic industry producing solar glass in India. The companies argued that if the existing countervailing duties expired, imports from Malaysia would continue to benefit from subsidies and would likely cause further injury to Indian manufacturers. Based on this request, DGTR launched a detailed review to examine the extent of subsidies provided to exporters in Malaysia and the impact of those imports on the Indian market.

During the investigation, the authority examined 26 different subsidy programs allegedly provided by the Government of Malaysia. Several of these programs were found to be countervailable, meaning they involved financial support from the government that offered a measurable benefit to exporters. One key issue identified was the provision of natural gas at less than adequate remuneration in the Sabah region. The investigation found that at least one exporter had access to natural gas supplied by a government-owned entity at prices lower than market levels, which reduced production costs.

The investigation also identified several tax-related incentives offered to exporters. Programs such as the Investment Tax Allowance and sales tax exemptions allowed companies to offset capital investment against taxable profits or avoid certain taxes on raw materials and equipment used in production. Another program, known as the Licensed Manufacturing Warehouse scheme, allowed manufacturers to import raw materials and machinery without paying customs duties and sales taxes. These benefits significantly lowered operational costs for exporters.

Among the exporters examined during the review were Xinyi Solar and SBH Kibing. According to DGTR’s findings, both companies benefited from some of the identified subsidy programs. The authority calculated subsidy margins for cooperating exporters within a range of zero to ten percent.

The investigation also assessed the impact of these imports on the Indian solar glass industry. The findings showed that imports from Malaysia were entering the Indian market at prices significantly lower than those offered by domestic manufacturers. The price undercutting margins were found to be between 30 percent and 40 percent during the period of investigation. This price gap created strong pressure on domestic producers and affected their financial performance.

The authority also observed evidence of price suppression in the market. The landed value of imported solar glass from Malaysia remained below both the cost of sales and the selling prices of Indian producers. As a result, domestic manufacturers were unable to raise their prices sufficiently to cover rising costs.

Although India’s demand for solar glass has grown rapidly due to the expansion in solar energy installations, the domestic industry has struggled financially. Production and sales volumes increased in response to rising demand, but manufacturers continued to experience cash losses and negative returns on investment. Capacity utilization levels also remained below optimal levels even though overall demand in the market has increased nearly six times since 2021.

After examining all available evidence, DGTR concluded that removing the countervailing duties would likely result in continued subsidized imports and further injury to the domestic industry. The authority noted that Malaysian exporters, many of whom are linked to Chinese solar glass producers, have the capacity to rapidly increase exports to India at aggressive prices.

Based on these findings, the authority recommended the continuation and strengthening of countervailing duties on solar glass imports from Malaysia in order to protect Indian manufacturers from unfair trade practices and maintain a balanced competitive environment in the country’s growing solar energy sector.