India’s decision to initiate an anti-dumping investigation into nylon-6 chip and granule imports from China and Russia marks a significant moment for the country’s man-made fibre (MMF) ecosystem. It highlights rising trade defensiveness amid mounting import dependence and price pressures across the synthetic textile value chain.

The investigation, launched by the Directorate General of Trade Remedies (DGTR), follows a complaint from Gujarat Polyfilms. This is a domestic producer of textile- and engineering-grade nylon-6 chips. The company alleged material injury caused by persistently low-priced imports, triggering price suppression, margin erosion, and weakened profitability in the domestic market.

Rising import dependence raises structural concerns.

India’s reliance on imported nylon-6 has increased sharply over the past two fiscal years. According to Commerce Ministry data, total imports rose from 277,369.6 tonnes worth $613.81 million in FY2023–24 to 335,242.2 tonnes valued at $730.61 million in FY2024–25.

China has consolidated its dominance. Imports from the country are surging by more than 33%, lifting its share of India’s total nylon-6 imports from around 49% to over 54%. Russia, though starting from a smaller base. Recorded a more than 300% jump in shipments, pushing its share from about 1% to 3.5%.

Combined, China and Russia accounted for nearly 58% of India’s nylon-6 imports in FY2024–25, up from roughly 50% a year earlier. It underscores India’s growing exposure to external supply dynamics in a strategically important raw material.

Why nylon-6 matters for India’s textile value chain

Nylon-6 chips are a critical input for India’s MMF sector and particularly for producers of synthetic yarns, performance fabrics, industrial textiles, and select automotive and electrical applications. The DGTR observed that imported and domestically produced nylon-6 chips are technically and commercially substitutable. This sharing similar physical and chemical properties, manufacturing processes, and end uses.

This high degree of substitutability allows buyers, especially cost-sensitive spinners and fabric manufacturers, to choose. To switch suppliers primarily based on price, amplifying the impact of low-priced imports on domestic producers.

Balancing trade remedies with supply stability

While anti-dumping duties could provide relief to domestic nylon-6 manufacturers, the implications for downstream textile players are more complex. Any duty-induced price increase would likely raise short-term input costs for yarn spinners and fabric manufacturers, many of whom operate on thin margins in an intensely competitive global export market.

Industry bodies and MSME representatives have cautioned that trade remedial actions must be carefully calibrated. Without parallel measures to ensure adequate domestic capacity, consistent quality, and competitive pricing, duties could risk supply disruptions, cost inflation, and reduced export competitiveness—particularly in performance and industrial textile segments.

At the same time, proponents argue that stabilising domestic production is essential to reducing long-term dependence on volatile imports, mitigating geopolitical supply risks, and strengthening India’s MMF self-reliance agenda.

Strategic implications beyond a single product

The nylon-6 investigation reflects a broader strategic shift in India’s trade policy approach toward critical textile intermediates. As the country seeks to expand MMF exports and move up the value chain, safeguarding domestic raw-material capacity is becoming increasingly central to industrial policy.

The challenge for policymakers will be to strike a balance between protecting domestic manufacturers from injurious dumping and maintaining a stable, affordable input ecosystem for downstream textile producers. Without undermining India’s competitiveness in global MMF and technical textile markets.

The DGTR’s final determination will therefore be closely watched, not only by nylon-6 producers and importers, but across India’s wider textile and synthetic fibre industry.

Source: Textile Today