India’s textile industry is facing a challenge from a surge of low-priced PVC paste resin imports, prompting an official investigation. This key material, vital for producing artificial leather and various technical textiles, is allegedly being dumped into the Indian market by exporters in the European Union and Japan. The Directorate General of Trade Remedies (DGTR), the investigative arm of the commerce ministry, has launched a probe following a formal complaint from Chemplast Sanmar Ltd. The company argues that these cut-price imports are significantly impacting profit margins for domestic manufacturers.
The DGTR’s investigation will focus on determining whether the imported PVC paste resin is being sold below fair market value, a practice known as dumping. If the investigation confirms these allegations and establishes that domestic producers are suffering material injury as a result, the DGTR will recommend appropriate anti-dumping duties. The final decision regarding the imposition of these duties rests with the finance ministry.
This move underscores India’s commitment to fair trade practices and protecting its domestic industries from unfair competition. The investigation aligns with World Trade Organisation (WTO) regulations, which allow member countries to impose duties to counteract the effects of dumping. India has previously taken similar action against cheap imports from various nations, including China, demonstrating its proactive approach to safeguarding its manufacturing sector. A recent example includes the DGTR’s recommendation last month to impose anti-dumping duties on PVC paste resin imports from six countries, a measure aimed at bolstering domestic production.
