India Extends Import Duties on Malaysian Solar Glass for Five Years
Quick Look
- India has extended import duties on Malaysian solar glass for five more years following a review that found removing the levy could harm domestic manufacturers.
- The duties, ranging from 9.71% to 10.14%, aim to boost India's solar manufacturing.
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Why It Matters
India has extended countervailing duties on imports of Malaysian solar glass for five years after a government review found that removing the levy could lead to subsidization and injury to domestic manufacturers. These duties, ranging from 9.71% to 10.14%, are part of India's strategy to boost domestic solar manufacturing and reduce import dependence.
India has continued countervailing duties on imports of Malaysian solar glass for another five years, according to a finance ministry gazette notification, after a government trade remedies investigation found that removing the levy could lead to a recurrence of subsidisation and injury to domestic manufacturers.
The finance ministry, in a notification dated June 2, imposed countervailing duties ranging from 9.71% to 10.14% of the cost, insurance and freight (CIF) value on imports of textured tempered glass, also known as solar glass, originating in or exported from Malaysia.
The move follows a sunset review by the Directorate General of Trade Remedies (DGTR), which concluded that ending the duty would likely result in the continuation or recurrence of subsidisation and injury to the domestic industry.
"The cessation of countervailing duty is likely to lead to continuation or recurrence of subsidization and injury to the domestic industry," the DGTR said in its final findings dated March 3, 2026, cited in the notification.
Under the latest order, imports manufactured by Xinyi Solar (Malaysia) Sdn. Bhd. and SBH Kibing Solar New Materials (M) SDN. BHD will attract a countervailing duty of 9.71% of CIF value, while shipments from all other producers will face a levy of 10.14%.
The notification supersedes an earlier countervailing duty order issued in March 2021 and will remain in force for five years unless revoked, amended or superseded earlier.
Solar glass is a key component used in photovoltaic modules and is considered critical to the country's clean energy ambitions.
The move is part of a broader effort by New Delhi to strengthen domestic solar manufacturing and reduce dependence on imports. This has led to India's solar module manufacturing capacity expanding rapidly in recent years, aided by a mix of customs duties and non-tariff measures aimed at boosting local production.
As part of that strategy, the government has tightened localisation requirements across the solar value chain. From June 1, eligible solar projects are required to source solar cells from approved domestic manufacturers under the Approved List of Models and Manufacturers (ALMM) List-II framework. New Delhi is also working on extending similar domestic sourcing requirements to upstream products such as solar ingots and wafers.
Open Questions
- What will be the specific impact on the cost of solar energy projects in India?
- Will Malaysia retaliate with its own trade measures?
- How will this affect the global supply chain for solar components?
