In order to protect the domestic players and to discourage cheap imports, the Government of India has started a probe into an alleged increase in imports of a chemical, which is used to make dyes and insecticides, from South Korea.
The Directorate General of Trade Remedies (DGTR) which ensures a level playing field to the Domestic Industry against the adverse impact of the unfair trade practices, has initiated an investigation following complaints by domestic firms. IG Petrochemicals and Thirumalai Chemicals have alleged that an increase in imports of Phthalic Anhydride from South Korea is causing serious injury to them.
In the probe, it would determine whether the imports of the chemical from Korea constitute increased imports and whether that have caused or is threatening to cause serious injury to the domestic industry. If it was established that the increase in imports has impacted domestic players, the directorate would recommend the imposition of safeguard duty on the imports. The finance ministry will take the final call to impose the duty.