New Delhi: The Commerce Ministry’s arm, DGTR, has initiated an anti-dumping probe into imports of nylon chips and granules — used in the textiles industry, from China and Russia, following a complaint by a domestic manufacturer.
The applicant has alleged that the dumping of Nylon 6 Chips and Granules with relative viscosity (RV) below 3 is impacting the domestic industry.
The applicant, Gujarat Polyfilms, has requested the imposition of anti-dumping duties on imports from China and Russia, the Directorate General of Trade Remedies (DGTR) said in a notification.
The company has alleged that imports of nylon-6 chips and granules with relative viscosity below three from China and Russia have increased sharply in recent years, both in absolute terms and relative to domestic consumption, leading to a decline in prices, suppressed margins, and adverse impact on profitability, as per the ministry’s notification.
Nylon-6 chips are primarily used in textile applications, particularly in the manufacture of synthetic yarns and fabrics, though they also find use in light-duty automotive and electrical applications. The DGTR has noted that the imported product and the domestically-produced material are technically and commercially substitutable, with similar physical and chemical characteristics, manufacturing processes, and end uses, allowing buyers to switch between them based largely on price.
An industry executive, who wished not to be named, said that in the absence of corrective duties, domestic manufacturers face difficulty competing with imports that benefit from scale, state support or lower input costs in exporting countries.
However, others caution that trade protection measures, if overused, can weaken export competitiveness in globally price-sensitive sectors.
“In this global market era, merely protecting domestic industries can curtail a country’s export prospects, as seen in India’s man-made fibre (MMF) textile exports, where prices became unviable in global markets,” said Raja M. Shanmugam, former president of the Tiruppur Exporters’ Association.
“Instead of imposing anti-dumping duties, the focus should be on equipping manufacturers to become more cost-competitive,” said Shanmugam.
Minister of State for Chemicals and Fertilizers Anupriya Patel told the Lok Sabha in March 2025 that India’s total production capacity of nylon-6 stands at 83,500 tonnes.
In India, nylon-6 chips are manufactured primarily by Gujarat State Fertilizers & Chemicals Ltd and Gujarat Polyfilms Pvt. Ltd. In addition, Chevy Polymers operates in recycled nylon-6 granules and plastic resins, while Kayavlon Impex is active as a supplier and trader of nylon chips.
India imported 277,369.6 tonnes of nylon-6 in FY24 worth $613.81 million, and 335,242.2 tonnes in FY25 worth $730.61 million, per commerce ministry data, underlining the country’s growing reliance on overseas suppliers for a key textile and industrial input. Imports from China grew much faster, increasing by over 33% from $297.56 million to $395.96 million, lifting China’s share in India’s total nylon-6 imports from around 49% in FY24 to more than 54% in FY25. This indicates a rising dependence on Chinese material even as domestic producers flag injury from low-priced imports.
Imports from Russia, though small in absolute terms, saw a sharp jump of over 300%, rising from $6.37 million to $25.90 million during the same period, with Russia’s share in total imports increasing from about 1% to 3.5%.
Taken together, China and Russia accounted for nearly 58% of India’s nylon-6 chip imports in FY25, up from about 50% a year earlier, a trend that adds context to the anti-dumping probe as authorities examine whether the surge in imports is distorting prices and hurting domestic manufacturing.
In its preliminary assessment, the DGTR has found prima facie evidence that imports from China and Russia are being dumped in the Indian market, with dumping margins above the de-minimis threshold, as per the order.
The authority has also observed a causal link between the allegedly dumped imports and injury to the domestic producer, citing indicators such as price depression, loss of market share, and weakened financial performance.
The period of investigation covers July 2024 to June 2025, while injury analysis spans the previous three financial years.
The case fits into a broader pattern of rising trade remedy actions by India in chemicals and polymers, sectors that are highly exposed to volatile global pricing and aggressive export strategies by overseas producers.
If the investigation confirms dumping and injury, the DGTR may recommend the imposition of anti-dumping duties to offset the price advantage of imports and restore fair competition. Any such duties, if imposed, would directly affect textile producers and other downstream users, who may see some impact on input costs, but are also expected to benefit from greater supply stability and reduced dependence on volatile imports.
Micro, small, and medium enterprise (MSME) industry representatives said that any trade remedial action would need to be accompanied by steps to ensure adequate and competitively-priced domestic supply of key raw materials to avoid disruption for small units.
“Domestic input material needs to be available at competitive prices and in adequate quantities. If the local supply of nylon-6 chips is reliable and reasonably priced, MSMEs will be able to adjust more smoothly without disrupting production or export commitments. Otherwise, it will be difficult for small manufacturers,” said Vinod Kumar, president, SME Forum.
