India launches formal probe

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India launches formal probe

On 20 March 2026, India’s trade authorities initiated an anti‑subsidy (countervailing duty) investigation into multi‑layer paperboard originating in or exported from China and Indonesia. The petition was filed by the Indian Paper Manufacturers Association (IPMA) on behalf of domestic producers, alleging that exporters benefited from government subsidies that distort competition.

Product and legal framework

• Product under review: Multi‑layer paperboard made of at least 51% white/virgin wood pulp, including Folding Box Board (FBB), Solid Bleached Sulphate (SBS), cup stock, and liquid packaging board in specified grammages.
• Legal basis: The investigation follows India’s Customs Tariff Act and the Anti‑Subsidy Rules; the Directorate General of Trade Remedies (DGTR) is the designated authority for fact‑finding and preliminary determinations.

Why the industry filed the petition

Domestic manufacturers say low‑priced imports—they allege supported by actionable subsidies—have eroded margins, reduced capacity utilisation, and shifted market share away from Indian mills. The petition cites public‑domain laws, notifications, and prior determinations as prima facie evidence of subsidisation.

Potential outcomes and economic impact

• Preliminary determination: DGTR will assess whether subsidies exist and whether they cause material injury to the domestic industry; a positive preliminary finding can lead to provisional measures.
• Final remedies: If subsidies and injury are confirmed, India may recommend countervailing duties; the finance ministry typically decides on levy imposition.
• Market effects: Importers could face higher costs; domestic producers may see temporary relief; trade relations with exporting countries could become strained.

What to watch next

• DGTR’s preliminary report and the evidence IPMA presents on price suppression and market share shifts.
• Responses from China and Indonesia during the consultation and comment phases under the WTO‑consistent process.

Sources

• Directorate General of Trade Remedies (DGTR) initiation notification, Countervailing duty/Anti‑Subsidy investigation concerning imports of Multi‑layer Paperboard, 20 March 2026.
• The Epoch Times, India Launches Anti‑Subsidy Investigation Into Paperboard Imports From China, Indonesia, 22 March 2026.
• BW Businessworld, India Initiates Anti‑subsidy Probe Into Paperboard Imports From China, Indonesia, 21 March 2026.
• The Economic Times, reporting on DGTR anti‑dumping/anti‑subsidy actions and procedures.
• Telangana Today / PTI, coverage of related anti‑dumping/anti‑subsidy probes in the paperboard sector.