The Indian government is probing anti-dumping allegations against a select Chinese polyester yarn following complaints from SRF and Reliance Industries.
SRF and Reliance Industries have alleged dumping of the yarn and asked for an investigation into the matter. If established that dumping has caused material injury to domestic players, the DGAD will recommend imposition of anti- dumping duty. Anti-dumping duties are levied to provide a level playing field to local industry by guarding against price discrepancies.
Increasing imports and dumping of goods from China have always been a concern for Indian companies. Exports to China were only USD 9 billion in 2015-16, but imports totalled USD 61.7 billion in the fiscal.
India is one of the most attractive markets for global manufacturers due to its large middle-class population. Imposition of anti-dumping duty is permissible under the Geneva-based World Trade Organisation (WTO) regime, of which both India and China are members.