India’s textile and apparel sector has voiced a strong opposition against a recommendation by the Directorate General of Trade Remedies (DGTR) to impose steep Anti-Dumping Duties (ADD) on Mono Ethylene Glycol (MEG). Ranging from $103 to $137 per metric tons, these proposed duties have sparked a Pan-India protest involving over 15 major trade associations. Industry leaders warn that this move could dismantle the fragile progress made by recent GST reforms, which reduced taxes on Man-made Fiber (MMF) to 5 per cent. By effectively raising MEG costs by an estimated 20 per cent, the levy threatens to create a ‘chokehold’ on the downstream value chain, erasing the affordability gains intended to make Indian textiles globally competitive.

Domino effect on employment and MSME Viability

The collective of trade bodies, including the Northern India Textile Mills' Association (NITMA) and the Confederation of Indian Textile Industry (CITI), warned of severe socio-economic fallout if the Finance Ministry approves the DGTR’s findings. An estimated 40,000 MSMEs are at immediate risk of closure, potentially stalling Rs 20,000–Rs 30,000 crore in planned expansions. Furthermore, the duty jeopardizes approximately 3 lakh potential jobs linked to the Production Linked Incentive (PLI) scheme. By worsening the ‘Inverted Duty Structure,’ the proposed levy makes Indian exports significantly more expensive, handing a competitive advantage to global rivals in the $350 billion international textile market.