India launches sunset review of Malaysian aluminium wire imports ahead of duty expiry

Summary

• India’s Directorate General of Trade Remedies (DGTR) has initiated a sunset review of countervailing duties on aluminium wire rods imported from Malaysia to assess whether existing trade protections should be extended.
• Major Indian aluminium producers have supported the review process, arguing that continued trade remedies may be necessary to address alleged subsidised imports and ensure fair competition.
• The review has raised concerns among downstream cable and electrical manufacturers, who rely on aluminium wire rods as a key input for power and infrastructure projects.

NEW DELHI, April 28, 2026 — India’s trade remedies authority has begun a formal review of countervailing duties imposed on aluminium wire rod imports from Malaysia, ahead of their scheduled expiry.

The Directorate General of Trade Remedies (DGTR) will assess whether the duties, first imposed in 2021, should be extended for another term based on evidence of continued or recurring injury to domestic producers.

The review has been initiated following representations from major Indian aluminium producers, including Hindalco Industries, Vedanta Limited, and Bharat Aluminium Company (BALCO), who have argued that existing protections remain necessary to ensure fair market conditions.

Product scope and trade concerns

The investigation covers aluminium wire rods used in electrical conductor applications, which are an essential input for transmission lines, industrial wiring, and infrastructure projects.

Domestic producers have raised concerns that imports from certain markets may benefit from government support measures, potentially affecting pricing competitiveness. These claims will be examined by the DGTR as part of its review process.

Industry balance and downstream concerns

While upstream producers support the continuation of trade protections, downstream manufacturers in the cable and electrical equipment sector have raised concerns about input cost pressures.

These manufacturers argue that aluminium wire rods are a critical raw material, and any extension of duties could influence production costs for infrastructure and power distribution projects.

Broader trade policy context

The sunset review is part of India’s broader use of trade remedy mechanisms, including anti-dumping and countervailing duty investigations, to address concerns related to subsidised or unfairly priced imports.

The DGTR’s findings will be submitted to the Ministry of Commerce for final decision-making, with outcomes typically influencing trade policy direction for the coming years.

Why this matters

Infrastructure cost sensitivity: Aluminium wire is a key material in power transmission and distribution systems, making trade policy decisions relevant to infrastructure planning.

Trade protection framework: The review reflects India’s continued use of trade remedies to balance domestic industry protection with downstream cost considerations.

Industrial supply chain impact: The decision will affect both primary aluminium producers and downstream manufacturing sectors dependent on stable raw material pricing.

FAQs

Q1. What is a sunset review?

It is a periodic investigation to determine whether existing trade duties should be continued or allowed to expire.

Q2. Why are aluminium wire rods important?

They are used in electrical conductors for power grids, industrial wiring, and infrastructure applications.

Q3. What happens if duties expire?

If not extended, duties may be removed, potentially lowering import costs but increasing competitive pressure on domestic producers.