India has extended countervailing duties on imports of Malaysian solar glass for another five years after a government trade remedies investigation found that removing the levy could lead to a recurrence of subsidisation and injury to domestic manufacturers.

According to a Finance Ministry gazette notification dated June 2, countervailing duties ranging from 9.71 percent to 10.14 percent of the cost, insurance and freight (CIF) value have been imposed on imports of textured tempered glass, commonly known as solar glass, originating in or exported from Malaysia.

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The decision follows a sunset review conducted 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 subsidisation and injury to the domestic industry," the DGTR said in its final findings dated March 3, 2026, cited in the notification.

Different Rates for Producers

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 percent of the CIF value, while shipments from all other producers will face a levy of 10.14 percent.

The notification replaces 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countervailing duty order issued in March 2021 and will remain in force for five years unless revoked, amended or superseded earlier.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 plays an important role in India's clean energy ambitions.

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The move is part of the government's broader effort to strengthen domestic solar manufacturing and reduce dependence on imports. India's solar module manufacturing capacity has expanded rapidly in recent years, supported by a combination of customs duties and non-tariff measures aimed at boosting local production.

As part of this 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.

The government is also considering extending similar domestic sourcing requirements to upstream products such as solar ingots and wafers.

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