Why India has launched an anti-dumping probe against China, Russia
What's the story
India has launched an anti-dumping investigation into the import of nylon-6 chips and granules from China and Russia. The move comes after domestic manufacturers raised concerns over cheap imports harming the local industry. The Directorate General of Trade Remedies (DGTR) under the Ministry of Commerce and Industry is spearheading the probe.
Complaint
Investigation based on complaint by Gujarat Polyfilms
The investigation was triggered by an application from Surat-based Gujarat Polyfilms Pvt. Ltd. The firm claims that imports of nylon-6 chips and granules with relative viscosity below three from China and Russia have surged in recent years. This increase, both in absolute terms and relative to domestic consumption, has led to price declines, suppressed margins, and a negative impact on profitability.
Usage
Nylon-6 chips: A versatile raw material
Nylon-6 chips, a key raw material in synthetic yarns and fabrics, also find applications in light-duty automotive and electrical products. The DGTR has observed that the imported product is technically and commercially substitutable with domestic production. They have similar physical and chemical characteristics, manufacturing processes, and end uses, allowing buyers to switch between them based largely on price.
Export competitiveness
Concerns over trade protection measures
An industry executive, who wished to remain anonymous, said domestic manufacturers struggle to compete with imports benefiting from scale, state support, or lower input costs in exporting countries. However, others warn that over-reliance on trade protection measures could hurt export competitiveness in globally price-sensitive sectors. "In this global market era, merely protecting domestic industries can curtail a country's export prospects," said Raja M. Shanmugam, former president of the Tiruppur Exporters' Association.
Import statistics
Nylon-6 imports from China and Russia
India imported 277,369.6 tons of nylon-6 in FY24 worth $613.81 million, and 335,242.2 tons in FY25 worth $730.61 million, per Commerce Ministry data. Imports from China grew much faster than those from other countries, over 33% jump from $297.56 million to $395.96 million, raising China's share in India's total nylon-6 imports from around 49% in FY24 to over 54% in FY25.