In a bid to shield domestic manufacturers and curb its rising trade deficit with China, India has imposed anti-dumping duties on four chemicals imported from the country—PEDA (used in herbicides), Acetonitrile (a key pharmaceutical solvent), Vitamin-A Palmitate, and Insoluble Sulphur (used in tyre manufacturing). The duties, announced in June 2025, are part of India’s broader strategy to promote local production and address unfair trade practices.
The Directorate General of Trade Remedies (DGTR) conducted detailed investigations and found that these chemicals were being dumped into the Indian market at prices well below their normal value, causing material harm to local industries. Based on these findings, the DGTR recommended duties that the Central Board of Indirect Taxes and Customs (CBIC) has now implemented for a period of five years.
The duties imposed are as follows:
PEDA: USD 1,305.6 to USD 2,017.9 per tonne
Acetonitrile: Up to USD 481 per tonne (also covering imports from Russia and Taiwan)
Vitamin-A Palmitate: Up to USD 20.87 per kg (including imports from the EU and Switzerland)
Insoluble Sulphur: Up to USD 358 per tonne (including imports from Japan)
These chemicals play a vital role in India’s agricultural, pharmaceutical, and tyre sectors. The decision is consistent with the World Trade Organisation (WTO) framework, which allows anti-dumping duties to ensure fair competition.
This move also reflects India’s growing concern over its ballooning trade imbalance with China. In FY 2024–25, India’s trade deficit with China hit a record USD 99.2 billion, with imports rising 11.5% to USD 113.45 billion, while exports fell 14.5% to USD 14.25 billion.
By discouraging the influx of underpriced imports, the government hopes to level the playing field for Indian producers, support domestic manufacturing, and enhance long-term economic resilience.