India Implements Anti-Dumping Duty on Solar Glass Imports to Boost Domestic Manufacturing – EQ
In Short : India has imposed a five-year anti-dumping duty on solar glass imports from China and Vietnam, ranging from \$570 to \$664 per metric tonne. The move aims to protect domestic manufacturers from unfair trade practices after a surge in imports. While the duty may increase solar module costs by 3-5%, it supports India’s goal of strengthening local solar production and reducing import dependence.
In Detail : India has implemented a five-year anti-dumping duty on solar glass imports from China and Vietnam, ranging from \$570 to \$664 per metric tonne. This decision, effective from December 4, 2024, is aimed at protecting the domestic solar manufacturing industry from unfair trade practices that have been undermining local producers. The move comes after a thorough investigation by the Directorate General of Trade Remedies (DGTR).
The investigation was initiated following a complaint from Borosil Renewables Ltd, a prominent Indian solar glass producer. It found a significant increase in imports from China and Vietnam, with volumes rising dramatically from 29,980 metric tonnes in 2020-21 to 779,017 metric tonnes during the investigation period. China’s imports surged from 29,324 metric tonnes to 659,732 metric tonnes, while Vietnam’s imports grew from 656 metric tonnes to 119,285 metric tonnes.
Solar glass, known as low iron or high transmission photovoltaic glass, accounts for 8-12% of the total cost of a solar module. The anti-dumping duty is expected to raise the price of solar modules by approximately 3-5%. This could affect the pricing of solar energy systems in the short term but aims to support the long-term growth of India’s domestic solar industry.
This decision aligns with India’s broader strategy to reduce dependence on foreign imports and strengthen its local solar manufacturing capabilities. The government has previously imposed similar duties on other products, such as Glufosinate and sodium citrate from China, to protect local industries and ensure fair trade practices in key sectors.
While the anti-dumping duty will likely provide relief to domestic solar glass producers, it may also lead to higher costs for solar module manufacturers, which could affect the cost of solar energy systems. The government has acknowledged this potential impact but emphasizes the long-term benefits of promoting self-reliance and domestic production.
Ultimately, this move highlights India’s commitment to developing a self-reliant renewable energy sector. By ensuring fair trade practices and supporting local manufacturing, India aims to build a sustainable energy future. The success of these measures will depend on the responsiveness of domestic industries and the ongoing monitoring of global import trends.
