Synopsis: A government probe has been launched after Indian yarn makers such as Reliance, well known Polyester and several others have accused Chinese exporters of dumping Polyester Textured Yarn at unfair prices. If the investigation confirms injury, anti-dumping duties may follow to protect domestic producers.
Polyester Textured Yarn or PTY is a key raw material used across India’s textile value chain, from sarees and dress fabrics to home textiles and industrial applications.
Over the past few years, Indian producers have been struggling against cheaper PTY imported from China, which is often priced lower due to large-scale Chinese production capacity and aggressive overseas pricing. Domestic manufacturers argue that this has created significant price pressure in the Indian market, hurting their margins, reducing capacity utilisation, and impacting profitability.
What’s the News
On 21st November 2025, Indian textile companies- Reliance Industries ,Wellknown Polyester and several others have claimed that Chinese suppliers have been dumping PTY, by selling it much below the fair value, this has made it difficult for Indian producers to operate competitively without any kind of policy intervention. Due to this, India has officially initiated an anti-dumping investigation into the imports of PTY that are originating from or are being exported by China.
The complaint is being backed by several other textile companies such as- Filatex India, Sanathan Textiles, Garden Silk Mills, Indorama Synthetics, and Madelin Enterprises. This widespread participation has signalled growing pressure from Indian textile producers who have been struggling to compete against cheaper Chinese imports over the past few years.
DGTR noted that there is “sufficient prima facie evidence” suggesting that this dumping has negatively impacted the Indian players through reduced market share, price undercutting, lower profitability, and the inability to maintain sustainable capacity utilisation.
The probe is going to examine the dumping period starting from April 1, 2024 to June 30, 2025. Additionally, the authority will evaluate injury data covering FY22- FY24 along with the current investigation period. This kind of multi-year assessment will help in determining whether the rising volume of low-priced Chinese imports has structurally damaged India’s domestic industry or not.
The Possible Outcome
If this investigation confirms that dumping has occurred and has been causing injury to the market, DGTR may recommend imposing anti-dumping duties on the PTY imports from China, while the final decision would still rest with the Ministry of Finance.
As duties would help create a fair playing field for the Indian manufacturers and would protect the competitiveness of the domestic textile industry, which could result in boosting the Indian Textile market and strengthening the domestic manufacturers
Lately, India has been increasingly active in imposing anti- dumping measures across several product categories, especially against the Chinese imports due to the widening trade deficit (100 billion dollars in FY24-25). Moreover, as India and China are WTO members, this investigation will be operated under the WTO guidelines in order to ensure fairness, transparency, and protection against predatory pricing.
-Adithya Menon
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