India's Textile Ministry and multiple industry bodies are urging a temporary suspension of anti-dumping investigations on critical chemical intermediaries, citing rising prices and supply shortages exacerbated by the West Asia conflict. This move signals potential relief for downstream buyers of elastomeric fibre yarn, viscose rayon filament yarn, and other inputs, but also highlights ongoing structural challenges in India's chemical supply chain that overseas importers and distributors should monitor closely.
Background of the request
According to industry sources, downstream sectors including textiles, footwear, and micro, small and medium enterprises (MSMEs) have approached India's Ministry of Commerce and Industry, requesting a deferment of anti-dumping investigations on key input chemicals facing supply disruptions and cost escalation. The Ministry of Textiles has specifically asked for a pause on probes involving elastomeric fibre yarn and viscose rayon filament yarn due to the geopolitical crisis affecting raw material availability and prices.
Government measures to ease supply pressures
The Indian government had earlier exempted import duty on 40 petrochemical products until June 30 to stabilize domestic availability. Authorities have also initiated fresh stocking efforts to secure supply of key chemicals used across manufacturing sectors. India's chemical industry remains one of the most protected under the country's trade regime, with 51 percent of all anti-dumping measures currently in force relating to chemical and allied sectors, according to a WTO Trade Policy Review report.
Anti-dumping activity and China's role
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 Department for Promotion of Industry and Internal Trade has reportedly asked the petrochemical industry to explore domestic production of over 200 import-dependent petrochemical products worth more than USD 50 billion annually, reflecting India's push for self-reliance.
What buyers should watch
MSME industry bodies argue that prolonged anti-dumping duties and quality control orders raise input costs and hurt downstream competitiveness. Federation of Indian Micro and Small & Medium Enterprises Secretary General Anil Bhardwaj stated such measures should be temporary and used only as a last resort. Overseas buyers sourcing from India should monitor whether the government grants the requested pause, as it could affect pricing and availability of elastomeric fibre yarn, viscose rayon filament yarn, and other chemical intermediates.
China sourcing context
Industry sources acknowledge that China's dominance in global chemical supply chains remains a structural challenge for India. 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.
Source: Read the original report | Published: May 29, 2026