Solar glass a key component in manufacturing solar photovoltaic panels. India imports over 90% of its solar glass demand from countries like Malaysia and China. Domestic producers allege below-cost dumping of solar glass by exporters causing injury.
Anti-dumping Investigation
- Initiated by Directorate General of Trade Remedies (DGTR) on complaint by domestic manufacturer
- Will assess if dumping of solar glass by Malaysia, Thailand and Vietnam has impacted domestic industry
- Propose anti-dumping duties if injury to domestic production is established after probe
Domestic Solar Equipment Industry Situation
- Rapid growth in India’s solar power capacity to achieve 2030 renewable targets
- However, 80% of solar equipment still imported causing trade deficit
- PMAY scheme mandates usage of domestically manufactured solar components
- But lack of integrated manufacturing facilities for key inputs like solar glass
Key Allegations by Domestic Producers
- Import prices of solar glass nearly 40% below cost of domestic manufacture
- Dumped imports increased 300% in a year capturing 80% domestic market share
- Causing significant decline in capacity utilization of domestic solar glass units
Likely Areas of Investigation
- Whether export price of solar glass is below normal value in exporting countries
- If the dumping margin – difference between fair and export price – is substantial
- Whether imports have impacted domestic solar glass producers by:
- Decline in sales, profits
- Loss of market share
- Reduced capacity utilization
- Inventory build-up
| Solar Glass Imports | FY 2021-22 | FY 2022-23 |
| Malaysia | $15 million | $45 million |
| Thailand | $8 million | $18 million |
| Vietnam | $5 million | $12 million |
- Probe expected to establish if sudden surge in low-cost imports have materially injured domestic solar glass industry
- If affirmative, would justify imposition of anti-dumping duty on specified countries
Solar Glass Usage
- Used for manufacturing solar photovoltaic panels and modules
- Solar glass needs high transparency and ability to withstand harsh environments
- Coated with materials like silicon nitride to improve light absorption
Indian Solar Equipment Industry
- Aims to build fully integrated solar manufacturing capacity of 100 GW
- Received $2 billion PLI incentives for manufacturing polysilicon to modules
- Additional $1.2 billion PLI scheme for high-efficiency solar modules manufacturing
- Capacity of only 6 GW per annum for solar glass production currently
Dumping Allegations Rationale
- Basic Customs Duty made solar glass imports more expensive
- But exporters lowered prices to maintain competitiveness
- Dumping margins alleged to be up to 50% of export price
- Significant incentives for solar glass manufacturing in exporting nations
Impact on Domestic Producers
- 25-30% production capacity cut to remain viable
- Under-utilization leads to sub-optimal production costs
- Financial losses with 15-20% erosion in profits
Critical Factors in Finding
- Ability to prove price undercutting by dumped imports
- Establishing clear correlation between surging imports and injury indicators
- Transparent disclosure of data by domestic and exporting country producers
Solar Glass Technology Trends
- Shift towards thin, lightweight and higher transmission efficiency glass
- Antireflective and self-cleaning glass becoming popular
- Automation and IoT integration for quality control and performance monitoring
Market Size and Growth
- Solar glass market expected to cross $18 billion globally by 2027
- India’s demand set to grow at 30% CAGR over 5 years
- Domestic capacity seen rising to 12 GW by 2025
Competitiveness Benchmarking
- Electricity and gas account for 70% of solar glass production costs
- Labour and logistics costs also higher in India vs ASEAN countries
- Full capacity utilization can cut per unit cost by 30-40%
Level Playing Field
- Higher costs of capital, infrastructure and regulatory compliance for domestic manufacturers
- Make in India preferences via BCD and PLI linked to local value addition
- Export incentives, tax benefits in competing countries
The market dynamics point to the need for short-term trade remedial measures coupled with long-term policy support for establishing an efficient domestic solar glass manufacturing and export base.
- The comprehensive investigation accounting for perspectives of all stakeholders will bolster India’s vision for solar manufacturing self-reliance.
- The anti-dumping investigation will provide policy support to the government’s vision for an Aatmanirbhar solar manufacturing ecosystem, aligning with India’s renewable expansion and net-zero pursuits.
