India has formally launched an anti-dumping investigation into imports of a key plastic raw material from China and Russia, responding to complaints from domestic manufacturers about market distortion and financial injury caused by cheap overseas shipments.
Probe Triggered by Domestic Industry Complaint
The Directorate General of Trade Remedies (DGTR), under the commerce and industry ministry, announced the probe on Saturday. The investigation focuses on imports of nylon-6 chips and granules with a relative viscosity below three. The action was initiated following an application filed by Surat-based Gujarat Polyfilms Pvt. Ltd, which claims a production capacity of roughly 1,200 tonnes per year for these materials.
The domestic applicant has alleged that shipments from China and Russia have surged in recent years, both in volume and as a share of local consumption. This influx is said to have suppressed market prices, squeezed profit margins, and adversely impacted the financial health of Indian producers. The DGTR's preliminary assessment found prima facie evidence of dumping with margins above the permissible threshold, noting a causal link to the alleged injury suffered by the local industry.
Examining the Surge in Imports and Market Impact
Official data underscores India's growing dependence on imported nylon-6, a vital input for textiles and light industrial applications. In the financial year 2024-25 (FY25), India imported 335,242.2 tonnes worth $730.61 million, up from 277,369.6 tonnes valued at $613.81 million in FY24.
The share of China and Russia in these imports has risen sharply. China's exports to India jumped by over 33% in value, from $297.56 million in FY24 to $395.96 million in FY25. Consequently, China's share of India's total nylon-6 imports climbed from about 49% to over 54%. Imports from Russia, though starting from a smaller base, witnessed an explosive growth of over 300%, rising from $6.37 million to $25.90 million. Together, the two nations accounted for nearly 58% of India's nylon-6 chip imports in FY25, up from around 50% the previous year.
The DGTR noted that the imported product and the material made domestically are technically and commercially substitutable, sharing similar characteristics and end-uses. This allows buyers to switch between sources based primarily on price.
Broader Debate on Trade Protection and Competitiveness
The case highlights the ongoing tension between shielding local industry and maintaining global cost competitiveness. An unnamed industry executive pointed out that without remedial duties, domestic manufacturers struggle to compete with imports that benefit from economies of scale, state support, or lower input costs in the exporting countries.
However, voices from export-oriented sectors urge caution. Raja M. Shanmugam, former president of the Tiruppur Exporters' Association, warned that overusing trade protection can backfire. "In this global market era, merely protecting domestic industries can curtail a country’s export prospects," he said, citing the example of India's man-made fibre textile exports where prices became unviable. He advocated for enabling manufacturers to become more cost-competitive rather than relying solely on anti-dumping duties.
The investigation period covers July 2024 to June 2025, with injury analysis spanning the three preceding financial years. If dumping and injury are confirmed, the DGTR may recommend imposing anti-dumping duties to level the playing field.
Vinod Kumar, President of the SME Forum, emphasized that any trade action must be paired with measures to ensure adequate and competitively-priced domestic supply to prevent disruption for micro, small, and medium enterprises (MSMEs). Downstream users, like textile producers, could face higher input costs from such duties but might gain from more stable supply chains.
This probe is part of a wider trend of increasing trade remedy actions by India in the chemicals and polymers sector, which remains vulnerable to volatile global prices and aggressive export strategies from international producers.
