India Imposes 27-63% Anti-Dumping Duties Plastic Processing Machines

India has taken a strong policy step by announcing anti-dumping duties plastic processing machines from China and Taiwan, with tariffs ranging from 27% to 63%, effective June 26, 2025. This bold move aims to safeguard domestic manufacturers who were facing unfair pricing due to dumped imports.

The Directorate General of Trade Remedies (DGTR) concluded that injection moulding machines (IMMs) imported at low prices were causing material injury to Indian industry. Acting on these findings, the Ministry of Finance issued a final notification to impose duties for five years.

What Are Anti-Dumping Duties?

Anti-dumping duties are imposed when foreign exporters sell products below fair market value, harming local industries. In this case, the DGTR found that plastic processing machines, especially injection moulding units from China and Taiwan, were entering Indian markets at unfairly low prices.

These duties now apply to:

• Fully assembled injection moulding machines
• Semi Knocked Down (SKD) and Completely Knocked Down (CKD) kits
• Machines with clamping forces from 40 tonnes to 1500 tonnes

Excluded are vertical moulding machines, blow moulding machines, used machines, and standalone parts.

Why India Enforced Anti-Dumping Duties Plastic Processing Machines

1. Protect Domestic Manufacturing: Indian companies were unable to compete on price due to dumped imports.
2. Prevent Market Disruption: Local firms were losing market share and facing underutilization of capacity.
3. Strengthen ‘Make in India’: Encouraging local production and reducing dependence on Chinese and Taiwanese imports.
4. Trade Fairness: Bringing parity between domestic and foreign pricing through regulatory safeguards.

 Breakdown of Duties by Exporter

This structured approach allows select exporters with relatively fair pricing to continue trade with India at reduced tariffs, while heavily penalizing others with the highest 63% duty rate.

 Impact on Indian Market

The imposition of anti-dumping duties plastic processing machines is expected to:

• Stabilize prices for Indian manufacturers
• Boost demand for locally produced injection moulding machines
• Encourage investment in domestic machinery and automation industries
• Reduce import dependency and encourage self-sufficiency

However, Indian importers and industries dependent on Chinese machines might see short-term cost increases. Over time, the shift is likely to build a more resilient domestic sector.

Global Trade Context

India has increasingly turned to anti-dumping duties plastic processing machines and similar protective measures to safeguard its core sectors. These anti-dumping duties plastic processing machines reflect a broader trend where the government is using trade policy as a shield against unfair imports.

Recently, similar duties have been imposed on:

• Steel products from China and Vietnam
• Aluminium foil imports
• Certain chemicals from Korea and the EU

This shows a consistent trade defense policy, particularly concerning Chinese imports that dominate large sections of India’s trade basket. In FY 2024–25, India’s trade deficit with China touched $92.9 billion, making anti-dumping duties plastic processing machines and other such counter-measures all the more critical for balancing trade.

What’s Next for Stakeholders?

As anti-dumping duties plastic processing machines take effect, different stakeholder groups need to adapt:

For Importers:

• Evaluate alternative sourcing options from non-penalized countries
• Pass on costs to end users where unavoidable
• Consider joint ventures with domestic manufacturers

For Indian Manufacturers:

• Capitalize on lower competition and expand operations
• Work on branding and quality improvements to match international standards

For Policymakers:

• Monitor long-term impact and prepare for potential WTO challenges
• Reassess tariffs periodically based on domestic industry response

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