India has launched an anti-dumping investigation into a type of synthetic rubber imported from China, a move that could lead to new import duties. The probe follows a complaint from a domestic manufacturer alleging that the cheap imports are causing harm to local industry.

The investigation is being conducted by the Directorate General of Trade Remedies (DGTR), under the commerce ministry. It focuses on Halo Isobutene and Isoprene Rubber, a material critical for making inner tubes for vehicles ranging from bicycles to trucks.

The product is also widely used in the manufacture of industrial and agricultural tyres. Beyond the automotive sector, its applications extend to hoses, seals, tank linings, conveyor belts, protective clothing, and consumer products such as sporting ball bladders.

The application to initiate the probe was filed by Reliance Sibur Elastomers, which alleged that the product was being dumped at unfairly low prices from China, causing harm to Indian producers.

“On the basis of the duly substantiated application filed by the domestic industry, and having satisfied itself... substantiating dumping of the product... injury to the domestic industry and a causal link between such dumping and injury, the authority hereby initiates an investigation,” the DGTR said in its notification.

If the investigation concludes that these dumped imports have materially injured domestic producers, the DGTR will recommend the imposition of an anti-dumping duty. The final decision on imposing any such levy will rest with the ministry of finance.

Anti-dumping duties are a recognised tool under World Trade Organisation (WTO) rules, designed to protect domestic industries from injury caused by unfairly low-priced imports. Both India and China are members of the global trade body.

India has a history of using such measures, having previously imposed anti-dumping duties on various Chinese products. The aim is to maintain fair trading practices and ensure a level playing field for local manufacturers, aligning with the government's broader stance on protecting domestic industry from unfair competition.

Source: Business World