The Indian Department of Commerce has implemented initial anti-dumping measures on specific solar glass manufacturers who export their products from China and Vietnam.
In recent preliminary findings released last week, the Directorate General of Trade Remedies discovered that seven glass manufacturers in China and one in Vietnam have exported products to India that have negatively impacted the domestic solar glass production industry.
The inquiry, initiated by Indian solar glass manufacturer Borosil Renewal Ltd. in February, pertains to textured tempered coated and uncoated solar glass. The Department of Commerce stated that these products are similar in physical, technological, and functional attributes to those produced domestically.
The initial results suggest that solar glass imports from China and Vietnam have driven down prices in the domestic industry below the cost of local production, halted a potential price rise, and maintained a dominant market position throughout the investigation period. Consequently, the findings indicate that India’s domestic solar glass sector has experienced financial losses, negative cash flow, and unfavorable returns on invested capital.
The Department of Commerce has allocated dumping margins ranging from 50% to 90% for Chinese exporters and from 30% to 40% for Vietnamese exporters.
According to the preliminary findings, the dumping rates for Chinese firms were determined by analyzing the production costs and product prices of domestic goods, as none of the respondents requested market economy treatment.
Trade measures concerning solar PV supply chains are growing in prevalence globally due to the rising strategic significance of the technology.
In a report released last month by the International Energy Agency (IEA), it was projected that the value of international trade in renewable energy technologies will increase by over threefold by 2035. Concurrently, risks to global supply security and the likelihood of disruptions are on the rise. The IEA highlighted global conflicts, as well as issues related to shipping and supply concentration, as significant factors impacting the trade of renewable energy.
The decision by the Indian industry and Department of Commerce comes in the wake of the continuing antidumping and countervailing duty probe on solar cells imported into the United States. Significantly, both investigations draw comparisons between Chinese and Southeast Asian solar producers. In its examination of product dumping and export tariffs, the US specifically mentioned Malaysia, Thailand, Cambodia, and Vietnam.
A recent report by the Institute for Energy Economics and Financial Analysis and JMK Research suggests that India and the US might enhance their solar trade ties in the future. The report indicates that India has the potential to surpass Southeast Asia as the primary exporter of solar products to the US, as both nations seek to reduce their dependence on Chinese influence in the supply chain.
The Indian government is actively working to promote domestic solar manufacturing by implementing a mix of incentives and tariffs. Recent data released by Indian research firm Mercom revealed that in the first half of 2024, the country increased its solar module capacity by 11.3GW and solar cell capacity by 2GW.
