No ADD on yarn imports gives industry a competitive advantage, say textile leaders

The Indian textile value chain has secured operational advantage following the government’s decision to allow the sunset period for proposed anti-dumping duties (ADD) on nylon, viscose, and elastomeric filament yarns, say industry leaders. By opting not to notify these duties before the June 19, 2026, deadline, the Ministry of Finance effectively prioritized the survival of downstream manufacturers over protectionist measures for upstream fiber producers, they observe. Analysts opine, this move directly boosts global price competitiveness of Indian garment exporters who were bracing for a cost escalation of several percentage points.

This decision complements the government’s ongoing strategy to streamline raw material costs, most notably the temporary exemption of the 11 per cent customs duty on cotton imports effective through October 2026. Together, these measures offer a vital buffer for weavers and knitters in hubs like Surat and Tiruppur, who have been struggling with liquidity pressures and margin erosion caused by geopolitical trade disruptions. Stakeholders emphasize, with global textile demand currently volatile, these actions prevent unnecessary inflationary pressure on the final apparel product, enabling Indian firms to maintain their standing against regional rivals like Vietnam and Bangladesh. The non-enforcement signals a potential shift in trade policy, favoring a broader export-led growth model over localized manufacturing protection.