India Imposes Provisional Duties on Solar Glass Imports

The Indian Ministry of Finance has imposed provisional anti-dumping duties on imports of solar glass from China and Vietnam. It is effective from December 4, 2024, majorly aiming at protecting the domestic industry from the impact of cheaper imports, which have caused pricing pressure and material injury to local producers.

What is Covered Under the Duty?

The duty applies to Textured Tempered Coated and Uncoated Glass, also known as solar glass or photovoltaic glass. These imports are classified under specific tariff headings and are primarily used in manufacturing solar photovoltaic modules for the power sector.

The anti-dumping duty is set for a period of six months, unless revoked, amended, or extended. According to preliminary findings by the Directorate General of Trade Remedies (DGTR), imports from these countries have been undercutting domestic prices, creating strain on local producers.

Why the Duty Was Imposed

Between June and September 2024, exporters from China and Vietnam reduced their FOB prices by up to 32%, directly impacting domestic pricing levels. The DGTR reported that these imports caused material injury to the Indian solar glass industry by being priced below normal value during the investigation period.

The Ministry of Commerce previously recommended duties of up to USD 677 per tonne on these products, citing the risk to domestic producers. The government has now implemented these measures under Section 9A(2) of the Customs Tariff Act, 1975, coupled with the Customs Tariff Rules of 1995.

The Broader Context

India has been upgrading its solar energy capacity, with 15 GW of installations in FY24, the highest-ever annual addition. With a goal to achieve 280 GW of solar capacity by 2030, domestic demand for solar glass is expected to rise. Measures like the imposition of anti-dumping duties aim to ensure fair trade practices and support local manufacturers amid competition. 

The announcement impacted related companies, with Borosil Renewables’ shares trading at ₹552.50, rising around 8% today, showing a 22.82% year-to-date gain and a 218.77% growth over five years. Bringing it all together, the provisional anti-dumping duty shows India’s plans to safeguard its domestic solar glass industry while balancing compliance with international trade norms.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.