The probe by the Directorate General of Trade Remedies follows a complaint by Indian Fishnet Manufacturers Association.
The anti-dumping duty on the product was imposed by the finance ministry in April 2018 and later extended till July 9 this year.
The complainant has alleged that the existing anti-dumping duty is being circumvented by producers in China by making export to India through Malaysia.
It has stated that there has been a change in pattern of trade since the imposition of these duties, and such a change is also undermining the effect of remedial measures.
A DGTR notification said “the authority hereby initiates an anti-circumvention investigation…to consider extension of existing anti-dumping duty on (the) imports”.
The country involved in the anti-circumvention investigation is Malaysia, it said. In international trade parlance, dumping happens when a country or a firm exports an item at a price lower than the price in its domestic market. Dumping impacts the price of that product in the importing country, hitting margins and profits of manufacturing firms.
The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters.