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Global Trade Research Initiative (GTRI) has said that the government's decision to impose import restrictions on low-priced Suspension Grade Polyvinyl Chloride (S-PVC) resin for six months is likely to impact foreign suppliers and push the domestic prices of the commodity. Recently, the Directorate General of Foreign Trade (DGFT) has introduced a Minimum Import Price (MIP) of $0.766 per kg for S-PVC resin. Imports priced above this level will continue to be freely imported after payment of applicable customs duties. Imports priced at $0.766 per kg or below will now require a DGFT import licence in addition to payment of import duties. The measure will remain effective for six months.

According to GTRI, the move is expected to support higher domestic PVC prices but is unlikely to significantly reduce India's reliance on imports, as S-PVC resin is a critical raw material used in the manufacture of pipes, fittings, cables and a wide range of plastic products. The move is expected to increase domestic PVC resin prices but is unlikely to reduce India's heavy dependence on imports,' GTRI Founder Ajay Srivastava said adding it is a key raw material used to make pipes, fittings, cables and many other plastic products. 

GTRI stated that India imported $1.63 billion worth of the product in 2025-26. China was the largest supplier with exports worth $735.4 million, followed by Japan ($280.4 million), Taiwan ($152.7 million), South Korea ($123.6 million), Mexico ($92.9 million), Indonesia, Thailand, the US, Singapore and Vietnam. Since every major supplier ships below the DGFT threshold of $0.766 per kg, almost the entire existing import trade now falls within the restricted category unless suppliers increase their declared prices.