India’s anti-subsidy probe on Malaysia’s aluminium wire rod imports for domestic boost

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The Government of India, through its Directorate General of Trade Remedies (DGTR) under the Ministry of Commerce, has launched an anti-subsidy investigation on aluminium wire products from Malaysia. The concern for a probe was raised by the leading Indian aluminium manufacturers, such as Vedanta Limited, Hindalco Industries Limited, and Bharat Aluminium Company Limited, urging for a review to finalise an extension to the duties for trade protections.

On Monday, the government announced that the probe has been made in light of the existing countervailing duties (CVDs) on Malaysia’s exports of “Aluminium Wire/Wire Rods above 7 mm diameter” (HSN code: 760511) that are scheduled to lapse in September. Under World Trade Organisation rules, countries can levy such duties to protect domestic industries from subsidised imports. 

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Being a major consumer of aluminium wire rods, India’s usage of the same is estimated at 1.41 million tonnes in 2023, rising to 1.44 million tonnes in 2024 and about 1.5 million tonnes in 2025. It is projected to reach an estimated 2.11 million tonnes by 2030, growing at a compound annual growth rate (CAGR) of 5.93 per cent.

Background: Since when has the probe been in action?

India and Malaysia have maintained strong trade ties and a free trade agreement, with Malaysia maintaining a trade surplus.

A complaint filed by Vedanta Limited and Bharat Aluminium Company flagged that Malaysian exporters are benefiting from government-backed subsidies, making their products cheaper and more competitive in India. The investigation was initiated on June 30, 2020 and imposed in September 2021 for a five-year period to determine whether subsidies exist, their extent and their impact on Indian manufacturers.

The primary period under the scope of investigation was April–December 2019, with data from 2016–2019 to be used for additional review.

India-Malaysia aluminium wire trade since 2021 anti-subsidy probe