In a significant move to protect domestic manufacturers, India has launched a formal investigation into the alleged dumping of a key textile raw material from two major global suppliers. The Directorate General of Trade Remedies (DGTR), under the commerce ministry, has initiated an anti-dumping probe concerning imports of Nylon 6 Chips and Granules from China and Russia.
Domestic Industry Raises Alarm
The investigation follows a formal complaint filed by a domestic producer, Gujarat Polyfilms. The company alleged that a surge in cheap imports of Nylon 6 Chips and Granules, specifically those with a relative viscosity (RV) below 3, is causing material injury to the local industry. These nylon chips are a crucial polymer used extensively in the manufacturing of textiles and various other industrial applications.
Based on the application, the DGTR conducted a preliminary examination. The trade body stated in an official notification that it has found prima facie evidence of dumping of the product originating from China and Russia. This evidence was deemed sufficient to warrant a full-scale investigation to determine the extent of the dumping and the resulting harm to Indian producers.
The Path of the Investigation and Potential Outcomes
With the initiation of the probe, the DGTR will now thoroughly examine the claims. The investigation will assess the volume of dumped imports, the price difference between the imported goods and their normal value in the exporting countries, and the consequent impact on the domestic industry in India.
If the directorate concludes that dumping has indeed occurred and has caused material injury to domestic players, it will recommend the imposition of anti-dumping duties on these imports. The final decision to levy such duties rests with the finance ministry.
A Measure for Fair Global Trade
Anti-dumping probes are a recognized trade remedy mechanism sanctioned under the rules of the World Trade Organisation (WTO), which counts India, China, and Russia among its members. These measures are designed to counteract the negative effects of imported goods sold at prices below their normal market value in the country of origin.
The primary objective of such duties is to ensure fair trading practices and to create a level playing field for domestic manufacturers competing against foreign producers and exporters. India has frequently utilized this tool to shield its industries from unfairly priced imports, having imposed anti-dumping duties on a range of products from various countries, including China, in the past.
This latest probe underscores the ongoing challenges in global trade and India's active use of WTO-compliant frameworks to safeguard the interests of its domestic industry, particularly in the vital textiles sector.
