Various sectors in India have mixed reactions to the preliminary ruling of the investigation into acrylic fiber safeguard measures

According to India’s “Economic Times”, various circles in India have mixed reactions to the Indian Safeguards Bureau’s recommendation on April 15 to impose a 20% temporary safeguard tax on imported acrylic fibers.
Domestic acrylic fiber manufacturers in India are rejoicing. Although the tax proposal has not yet been implemented, these companies have begun to increase the sales price of acrylic fiber. User industries (knitting companies mainly located in Punjab and Rajasthan) are worried that this will cause an increase in raw material costs, which will in turn lead to a 20-25% increase in knitted garment prices. User industries view the preliminary ruling as a protectionist measure, saying it gives inefficient domestic industries an unfair competitive advantage. In addition, some large Indian companies have acrylic fiber production plants abroad, and they are worried that their overseas subsidiaries’ exports of acrylic fiber to India will be affected.