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India’s Anti-Dumping Duty on Liquid Epoxy Resins: Implications for Trade and Industry
India's imposition of a five-year anti-dumping duty on liquid epoxy resins from China and three other countries reflects a strategic shift in trade policy, aiming to protect domestic industries.
Mumbai, India — The Indian government has imposed a five-year anti-dumping duty on imports of liquid epoxy resins from China, the European Union, South Korea, and the united states. The duty is aimed at protecting local manufacturers from unfair pricing practices that undermine the domestic market. This decision is part of India’s broader strategy to bolster its manufacturing sector and reduce dependency on foreign imports.
This move comes at a crucial time as India seeks to enhance its self-reliance in key sectors, particularly in chemicals and materials critical for various industries, including automotive, construction, and electronics. The anti-dumping duty, which ranges from 8.4% to 24.1%, will be applicable for five years and is expected to significantly raise the cost of imported epoxy resins, making domestic production more competitive.
The significance of this policy shift cannot be overstated. With the global market for epoxy resins projected to grow from $9.6 billion in 2022 to $12.3 billion by 2030, according to Fortune Business Insights, India aims to capture a larger share of this lucrative market. Currently, the country imports approximately 70% of its epoxy resin requirements, primarily from China and other foreign suppliers.[1]
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Read More →This anti-dumping measure is part of a series of trade regulations that the Indian government has implemented in recent years, aiming to protect domestic industries from foreign competition. In 2020, India imposed similar duties on imports of certain types of solar glass from China and Malaysia, reinforcing its commitment to maintaining a level playing field for local manufacturers.[2]
With the global market for epoxy resins projected to grow from $9.6 billion in 2022 to $12.3 billion by 2030, according to Fortune Business Insights, India aims to capture a larger share of this lucrative market.
Furthermore, the Indian government’s ‘Make in India’ initiative emphasizes domestic manufacturing and innovation. By imposing these duties, India is not only safeguarding its industries but also encouraging foreign and local investors to establish production facilities within the country. This aligns with the government’s broader goal of making India a global manufacturing hub.
However, the new duties may lead to higher prices for consumers and businesses that rely on these materials. Industry experts warn that while protecting local manufacturers is essential, it is equally important to ensure that the cost of raw materials does not hinder growth in other sectors.[3]
Analysts are divided on the implications of these duties. Some argue that they will lead to a more resilient domestic industry capable of meeting local demand and reducing reliance on imports. Others, however, caution that increased costs could stifle growth in downstream industries that depend on affordable access to epoxy resins.
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Read More →For companies like BASF and Huntsman Corporation, which are major suppliers of epoxy resins, the duties present both challenges and opportunities. While they may see a decrease in exports to India, there is potential for collaboration with Indian manufacturers looking to expand their product lines and capabilities. As these companies adapt to the new landscape, there may be increased investment in local joint ventures or production facilities to mitigate the impact of tariffs.
Looking ahead, the effectiveness of this anti-dumping duty will depend on its enforcement and the response from affected countries. China, in particular, has previously challenged Indian trade measures at the World Trade Organization (WTO). The ongoing geopolitical tensions could further complicate trade relationships, especially as countries reassess their supply chains in light of recent global disruptions.
Industry experts warn that while protecting local manufacturers is essential, it is equally important to ensure that the cost of raw materials does not hinder growth in other sectors.[3]
In conclusion, India’s imposition of a five-year anti-dumping duty on liquid epoxy resins is a significant step toward strengthening its domestic manufacturing capabilities. As the global market for these materials grows, the challenge will be to balance protecting local industries with ensuring that costs do not escalate for businesses and consumers alike. The outcome of this policy will likely shape the future landscape of manufacturing and trade in India, setting a precedent for how the country navigates international trade relations in an increasingly interconnected world.
