Government Acts Against Cheap Imports to Support Domestic Manufacturing

India has taken a significant trade policy step to safeguard its domestic textile value chain by imposing anti-dumping duties on imports of Elastomeric Filament Yarn, commonly known as spandex. The decision by the Ministry of Finance follows an investigation conducted by the Directorate General of Anti-Dumping and Allied Duties after concerns were raised about low-priced imports affecting domestic producers.

The probe was initiated after a complaint from Indorama Industries Ltd, currently the only domestic manufacturer of spandex yarn in India. The investigation concluded that imports from China, South Korea, Taiwan and Vietnam were being sold at unfairly low prices, impacting local manufacturing competitiveness. Based on the findings, the government has imposed anti-dumping duties ranging from nil to about $3.34 per kilogram, depending on the exporting country and manufacturer.

Spandex: A Small Fibre with Big Role in Apparel Comfort

Spandex, also known as elastane, plays a critical role in modern apparel manufacturing due to its exceptional elasticity and comfort properties. It is widely used across fashion, sportswear and technical textiles to improve garment fit and flexibility.

Major applications of spandex yarn include:

• Hosiery and stretchable innerwear
• Denim and fashion apparel
• Sportswear and gym clothing
• Swimwear and performance garments
• Baby diapers and elastic waistbands
• Medical and compression textiles

Industry experts note that while the anti-dumping duty may strengthen domestic manufacturing, it could also slightly increase input costs for fabric and garment manufacturers who depend on imported spandex for blending with cotton and polyester yarns.

Mixed Impact Expected Across Textile Value Chain

The policy decision is expected to have both positive and challenging impacts across the textile ecosystem. While domestic yarn producers may benefit from protection against unfair competition, downstream sectors such as knitting, weaving and garment manufacturing may face short-term cost pressures.

Possible impacts of the anti-dumping duty include:

• Protection for domestic spandex manufacturers
• Encouragement of local fibre production
• Slight increase in raw material costs for apparel units
• Potential price adjustments in stretch garments
• Long-term push toward supply chain self-reliance

Export-oriented garment clusters such as Tirupur may need to adjust sourcing strategies to manage cost implications. However, policymakers believe such measures are necessary to ensure fair trade practices and to promote domestic manufacturing under India’s broader industrial development strategy. In the long run, the move could encourage new investments in specialty fibre manufacturing within India, reducing dependence on imports and strengthening the country’s technical textile capabilities