India cracks down on cheap Chinese rubber imports hurting local manufacturers

In a move aimed at protecting India’s auto industry, the Commerce Ministry’s investigation arm, the Directorate General of Trade Remedies (DGTR), has launched an anti-dumping probe into imports of a key Chinese rubber following complaints of unfair pricing.

Domestic producer Reliance Sibur Elastomers alleged that Halo Isobutene and Isoprene Rubber from China is being dumped into the Indian market at below-normal value, undercutting domestic prices and crippling local production.

The company has urged the government to impose anti-dumping duties to curb the inflow of cheap imports.

“On the basis of the duly substantiated application filed by the domestic industry, and having satisfied itself, on the basis of the prima facie evidence submitted, substantiating dumping of the product under consideration from the subject countries, injury to the domestic industry and a causal link between such dumping and injury... the authority, hereby, initiates an investigation,” DGTR said in its notification.

The investigation will determine whether the dumping has inflicted material damage on the Indian industry. If proven, the DGTR will recommend imposing duties on these imports, a move that will then need the finance ministry’s approval.

Used extensively in the production of inner tubes for bicycles, cars, trucks, and agricultural tyres, the rubber also finds use in hoses, seals, conveyor belts, tank linings, protective clothing and even sports goods.

India’s action underscores growing concern over the impact of cheap Chinese imports across multiple sectors.

Anti-dumping measures, permitted under World Trade Organisation (WTO) rules, are often used to restore fair competition when foreign producers flood markets with artificially low-priced goods.

India and China are both WTO members. Over the years, New Delhi has imposed anti-dumping duties on several Chinese products.