India is moving ahead with plans to impose anti-dumping duties on imports of rayon yarn from China, following concerns raised by domestic manufacturers over unfair pricing practices. The proposed measure aims to protect the local textile industry from low-cost imports that are believed to be undercutting Indian producers.
According to industry sources, an investigation by the Directorate General of Trade Remedies (DGTR) found preliminary evidence suggesting that Chinese exporters have been dumping rayon yarn in the Indian market at prices below fair value. This has reportedly caused material injury to domestic manufacturers, impacting production levels, profitability, and market share.
The imposition of anti-dumping duties is expected to create a level playing field for Indian producers, particularly small and medium enterprises that have been struggling to compete with cheaper imports. Industry stakeholders have welcomed the move, stating that it will support capacity utilization and encourage fresh investments in the sector.
However, some importers and downstream users have expressed concerns about potential cost increases, which could impact pricing across the textile value chain. The government is expected to take a balanced view before finalizing the duty structure, ensuring that the interests of both producers and consumers are safeguarded.
The development comes amid broader efforts by India to strengthen its domestic manufacturing base and reduce dependency on imports in key sectors, including textiles.