Textile Ministry, Industry Bodies Want Pause On Anti-Dumping Investigations In Key Chemicals

New Delhi, May 29 (KNN) Textiles ministry as well as several industry bodies are learnt to have sought a temporary suspension of anti-dumping investigations on key chemical intermediaries amid rising prices and supply shortages triggered by the ongoing conflict in West Asia.
 
According to industry sources, downstream sectors such as textiles, footwear and MSMEs have approached the Ministry of Commerce and Industry, urging deferment of anti-dumping investigations on critical input chemicals facing supply disruptions and cost escalation, reported Indian Express.
 
Textile Ministry Flags Raw Material Supply Concerns
An official said the Ministry of Textiles has also requested a pause in anti-dumping investigations on certain chemical intermediaries, including elastomeric fibre yarn and viscose rayon filament yarn, due to the impact of the geopolitical crisis on raw material availability and prices.
 
The government had earlier exempted import duty on 40 petrochemical products till June 30 in an effort to ease supply pressures and stabilise domestic availability.
 
At the same time, authorities have initiated fresh stocking efforts to secure the supply of key chemicals used across manufacturing sectors. India’s chemical industry remains among the most protected sectors under the country’s trade regime.
 
Chemicals Account For Majority Of India’s Anti-Dumping Measures
According to a World Trade Organization (WTO) Trade Policy Review report, 51 percent of India’s anti-dumping measures currently in force relate to the chemical and allied sectors. 
 
Between January 2021 and June 2025, India initiated 226 anti-dumping investigations, with 130 resulting in duties, while 170 measures remained active as of June 2025. China accounted for the largest share of these actions.
 
The issue has gained attention amid supply disruptions linked to the West Asia crisis. Recently, the Department for Promotion of Industry and Internal Trade reportedly asked the petrochemical industry to explore domestic production of over 200 import-dependent petrochemical products worth more than USD 50 billion annually.
 
MSME Industry Warns Of Rising Input Costs
MSME industry bodies argued that prolonged anti-dumping duties and quality control orders raise input costs and hurt the competitiveness of downstream manufacturers. 
 
Federation of Indian Micro and Small & Medium Enterprises (FISME) Secretary General Anil Bhardwaj said such measures should be temporary and used only as a last resort.
 
At the same time, industry sources acknowledged that China’s dominance in global chemical supply chains remains a structural challenge. NITI Aayog noted that India’s chemical imports stood at USD 75 billion against exports of USD 44 billion, resulting in a USD 31 billion trade deficit. 
 
The think tank added that India’s petrochemical sector remains concentrated in commodity chemicals and polymers, with limited diversification into higher-value specialty chemicals, highlighting the need for strategic policy support and product diversification to improve global competitiveness.

(KNN Bureau)