India Initiates Trade Investigation Against Chinese Polyester Yarn Imports
India has officially launched an anti-dumping investigation targeting polyester yarn imports from China, marking a significant move to protect domestic manufacturers from unfair trade practices. The Directorate General of Trade Remedies (DGTR) announced the probe on November 21, 2025, responding to formal applications filed by major Indian producers.
Domestic Industry Raises Alarm Over Cheap Imports
Two prominent Indian companies - Reliance Industries and Wellknown Polyester - have jointly petitioned the government, asserting that cheap imports of polyester yarn from China are causing substantial harm to the domestic industry. In their applications submitted to DGTR, the companies provided evidence showing how these low-priced imports have negatively impacted local manufacturing operations.
The petitioners have specifically claimed that the dumped imports from China have resulted in material injury to the domestic polyester yarn sector. Material injury in trade remedy contexts typically refers to significant harm to a domestic industry, which can include declining sales, reduced profits, loss of market share, and negative effects on employment and production capacity.
DGTR's Investigation Process and Next Steps
The Directorate General of Trade Remedies, which operates under India's Ministry of Commerce and Industry, will now conduct a thorough examination of the allegations. The investigation process will involve:
- Analyzing price differences between Chinese imports and domestic products
- Examining the impact on Indian manufacturers
- Determining whether dumping has actually occurred
- Assessing the extent of injury to the domestic industry
During the investigation period, which typically lasts for several months, DGTR will collect data from all interested parties, including Chinese exporters, Indian importers, and domestic producers. The probe will establish whether the imported polyester yarn from China is being sold in India at prices below normal value in their home market.
If the investigation concludes that dumping has occurred and caused material injury to domestic industry, DGTR may recommend imposing anti-dumping duties on Chinese polyester yarn imports. These duties would aim to level the playing field for Indian manufacturers and protect them from unfair trade practices.
The initiation of this probe reflects India's continued vigilance in monitoring import patterns and taking appropriate trade remedy actions when necessary to safeguard domestic industry interests.
