India has launched an anti-dumping probe into Taiwanese imports of phthalic anhydride, a key industrial chemical used to make plastics and paints, as per a notification issued by the commerce and industry ministry. The probe comes in the wake of domestic manufacturers’ complaints of being priced out.
The investigation by the Directorate General of Trade Remedies (DGTR), initiated after a complaint by IG Petrochemicals Ltd, Thirumalai Chemicals Ltd and TCL Intermediates Pvt Ltd, comes as imports from Taiwan have risen sharply despite an overall decline in India’s imports of the product—a key plastic additive chemical used to produce plasticizers, polyester resins, paints and coatings. This has raised concern over price suppression and weakening domestic producers’ capacity utilization.
The investigation will be for the 1 October 2024 to 30 September 2025 period, while the injury analysis will examine trends over the previous three financial years as well as the probe period, the notification said.
The companies alleged that Taiwanese imports of the chemical were being dumped in India at prices below their normal value, causing material injury to domestic producers, per the notification issued on 12 March.
Queries sent to the complainant companies on Friday remained unanswered until press time.
Phthalic anhydride is classified under Chapter 29 of the Customs Tariff Act, and is typically imported under tariff item 29173500.
India imports phthalic anhydride from several countries, including China, Japan, Korea, Russia, Taiwan and Thailand.
As per the commerce ministry data, India’s overall imports of the chemical fell 25.4% to $65.51 million in FY25 from $87.84 million in the previous year. Imports from China, for instance, slumped 53% to $16.76 million in FY25. In contrast, imports from Taiwan rose 38% to $38.82 million in FY25 from $28.12 million in FY24.
As per the notification, the DGTR said the investigation will examine whether the Taiwanese product is being dumped in India and whether such imports have caused injury to the domestic industry. If the allegations are established, the authority may recommend imposition of anti-dumping duties to offset the unfair pricing.
The DGTR noted that a preliminary examination of the evidence submitted by the applicants indicates that the alleged dumping margin is above the de-minimis level, providing sufficient basis to initiate a formal investigation.
Anti-dumping investigations are meant to protect the domestic industry from unfair pricing while maintaining fair competition in the market.
“India’s The anti-dumping framework is designed to maintain a level playing field for domestic manufacturers. If imports are found to be priced below fair market value and causing injury to local industry, corrective duties can help restore competitive neutrality in the market,” said Jaijit Bhattacharya, founder and president of the Center for Digital Economy Policy Research (C-DEP), a think tank.
