HYDERABAD: India’s dependence on imported soda ash has risen sharply, with imports up 81.3 per cent since 2021-22, raising concerns about the country's domestic manufacturing capacity and clean energy ambitions, according to a new report.
The report, titled Soda Ash Industry in Global Value Chains: Trade Dynamics, Production Landscape, and India’s Strategic Role, was released by the Centre for Domestic Economy Policy Research (C-DEP) in collaboration with the Centre for WTO Studies (CWS) under the Ministry of Commerce and Industry.
It found that imported soda ash accounted for 22 per cent of India's total demand in 2024-25, despite sufficient domestic production capacity. The report attributed the increase to global overcapacity, falling international prices and surplus supplies from countries including the US, China and Türkiye being redirected towards India.
Soda ash, also known as sodium carbonate, is a key industrial raw material used in the manufacture of solar glass for photovoltaic panels. It is also used in processing lithium carbonate, an important material for batteries used in electric vehicles and energy storage systems.
The report warned that growing import dependence could weaken domestic producers and expose critical clean energy supply chains to external disruptions. It also noted that average dumping increased by 42.8 per cent between FY23 and FY25, adding to the pressure on Indian manufacturers.
“India cannot aspire to become a global leader in solar energy and electric mobility while allowing the domestic industries supplying their essential raw materials to weaken,” C-DEP president Jaijit Bhattacharya said.
The report recommended the use of World Trade Organization provisions to impose quantitative restrictions on imports. It also called for the early implementation of an initial safeguard import quota of 7.55 lakh tonnes, as recommended by the Directorate General of Trade Remedies (DGTR).
It further called for improvements in logistics and energy efficiency to strengthen the competitiveness of domestic producers.
The concerns come amid a separate safeguard investigation by the DGTR into rising soda ash imports. In its November 4 final findings, the trade remedies body identified a significant increase in imports and a threat of serious injury to the domestic industry.
The issue has implications beyond the chemical industry, as soda ash is an essential input for sectors central to India's solar energy and electric mobility expansion.
(With inputs from media reports)