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India probes China’s alleged dumping of polyester yarn to protect local firms

A high-stakes trade war brews as Indian firms fight back against cheap Chinese imports. Will tariffs reshape the textile industry’s future?

In this image there is a book, wool roll, cloth, papers on the table.
In this image there is a book, wool roll, cloth, papers on the table.

India probes China’s alleged dumping of polyester yarn to protect local firms

India has launched a government probe into claims that Chinese exporters are dumping Polyester Textured Yarn (PTY) at unfairly low prices. Major Indian manufacturers, including Reliance and Wellknown Polyester, have accused China of undercutting local producers. The investigation follows growing concerns over the impact of cheap imports on India’s textile industry.

The Directorate General of Trade Remedies (DGTR) initiated the probe on November 21, 2025. It will examine PTY imports from China between April 1, 2024, and June 30, 2025. The focus is on whether dumping has harmed Indian firms by reducing market share, profits, and production capacity.

The probe’s findings will determine whether India imposes duties to shield its textile sector. A decision in favour of local producers could lead to higher costs for Chinese PTY imports. The outcome will likely influence future trade policies between the two countries.

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