India has initiated an anti-dumping investigation into imports of nylon-6 chips and granules from China and Russia, following complaints from domestic manufacturers that low-priced overseas supplies are hurting the local industry, the commerce ministry said on Saturday.
The probe has been launched by the Directorate General of Trade Remedies (DGTR) under the Ministry of Commerce and Industry, amid concerns over price suppression and market distortion in the synthetic raw materials segment.
The investigation was triggered by an application from Surat-based Gujarat Polyfilms Pvt. Ltd, which has an installed capacity of about 1,200 tonnes per year for nylon-6 chips across engineering and textile grades. The company has alleged that imports of nylon-6 chips and granules with relative viscosity below three from China and Russia have risen sharply in recent years, both in absolute terms and relative to domestic consumption, leading to falling prices, squeezed margins and weakened profitability.
Nylon-6 chips are primarily used in textile applications such as synthetic yarns and fabrics, with additional uses in light-duty automotive and electrical components. The DGTR noted that imported and domestically produced nylon-6 chips are technically and commercially substitutable, sharing similar physical and chemical characteristics, manufacturing processes and end uses, allowing buyers to switch largely on the basis of price.
In its preliminary assessment, the DGTR found prima facie evidence that imports from China and Russia are being dumped in the Indian market, with dumping margins exceeding the de minimis threshold. The authority also observed a causal link between the allegedly dumped imports and injury to the domestic industry, citing price depression, loss of market share and deterioration in financial performance.
The period of investigation covers July 2024 to June 2025, while the injury analysis spans the previous three financial years.
An industry executive said domestic manufacturers struggle to compete with imports that benefit from scale, state support or lower input costs in exporting countries if corrective duties are not imposed. However, exporters cautioned against excessive trade protection. Raja M. Shanmugam, former president of the Tiruppur Exporters’ Association, said that over-reliance on duties could hurt India’s export competitiveness, particularly in price-sensitive sectors such as man-made fibre textiles, and argued for a stronger focus on improving cost efficiency.
According to government data, India’s total nylon-6 production capacity stands at about 83,500 tonnes. Domestic production is led by Gujarat State Fertilizers & Chemicals Ltd and Gujarat Polyfilms Pvt. Ltd, while firms such as Chevy Polymers operate in recycled nylon-6 granules and Kayavlon Impex functions mainly as a trader.
India’s reliance on imports has increased sharply. Nylon-6 imports rose to 335,242.2 tonnes worth $730.61 million in FY25 from 277,369.6 tonnes worth $613.81 million in FY24. Imports from China jumped over 33% in value to $395.96 million, raising China’s share of total imports to more than 54% in FY25. Imports from Russia, though smaller, surged over 300% to $25.90 million, lifting its share to about 3.5%.
Together, China and Russia accounted for nearly 58% of India’s nylon-6 imports in FY25, up from around 50% a year earlier.
If the probe confirms dumping and injury, the DGTR may recommend anti-dumping duties to restore fair competition. While such measures could raise input costs for textile and other downstream users, authorities say they could also improve supply stability and reduce dependence on volatile imports.
MSME representatives stressed that any trade remedial action must be accompanied by steps to ensure adequate and competitively priced domestic supplies. “If local nylon-6 availability is reliable and reasonably priced, MSMEs can adjust. Otherwise, production and export commitments could be disrupted,” said Vinod Kumar, president of the SME Forum.
