India begins probe against alleged dumping of polyester yarn by Chinese firms

New Delhi: India has initiated a probe against alleged dumping of polyester textured yarn by Chinese companies into the country, following complaints by two domestic players including Reliance industries Ltd, according to a notification.

The Directorate General of Trade Remedies (DGTR) said that Reliance and Wellknown Polyester in their applications have claimed that the cheap import of these yarns from China have caused material injury to the domestic industry and accordingly have requested the government to impose antidumping duty.

On the basis of the duly substantiated written applications submitted by the applicants, and having reached satisfaction based on the prima facie evidence submitted by the applicants concerning the dumping of the products, "the Authority, hereby, initiates an anti-dumping" investigations, the DGTR has said.

If it is established that these dumplings have caused material injury to domestic players, the DGTR would recommend the imposition of anti-dumping duty on these imports. The finance ministry takes the final decision to impose these duties.

Anti-dumping probes are conducted by countries to determine whether domestic industries have been hurt because of a surge in cheap imports.

As a countermeasure, they impose these duties under the multilateral regime of the Geneva-based World Trade Organisation (WTO). The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters.

India has already imposed anti-dumping duty on several products to tackle cheap imports from various countries, including China.

India and China both are members of the WTO. China is the second largest trading partner of India. India has time and again flagged serious concerns over the widening trade deficit with the neighbouring country, which stood at USD 100 billion in 2024-25.