Background
- Dumping: Selling goods in a foreign market at a price lower than their normal value.
- Anti-Dumping Duty: A protective tariff imposed by a country to counteract dumping and safeguard domestic industries.
- Directorate General of Trade Remedies (DGTR): The investigative body under the Ministry of Commerce that recommends anti-dumping measures.
Relevance : GS 2(Health ,Governance) , GS 3(Import ,Duties)
Key Developments
- India imposed anti-dumping duties on five Chinese goods:
- Soft Ferrite Cores (used in EVs, chargers, telecom devices) – Up to 35% duty on CIF value.
- Vacuum Insulated Flask – $1,732 per tonne duty.
- Aluminium Foil – Up to $873 per tonne duty (provisional for 6 months).
- Trichloro Isocyanuric Acid (used in water treatment) – $276–$986 per tonne duty on imports from China & Japan.
- Poly Vinyl Chloride (PVC) Paste Resin – $89–$707 per tonne duty on imports from China, Korea, Malaysia, Norway, Taiwan, and Thailand (for 5 years).
- Rationale for Imposition
- These goods were exported from China at below normal prices, causing injury to Indian manufacturers.
- Duties were imposed based on DGTR recommendations.
Implications
- Impact on Domestic Industry: Positive, as it prevents unfair competition and supports Indian manufacturers.
- Effect on Consumers: Prices of affected products may rise in the short term.
- Trade Relations with China: Could lead to retaliatory measures from China, impacting bilateral trade.
- WTO Compliance: India’s actions align with WTO rules that allow anti-dumping duties if domestic industry harm is proven.
- Strategic Move: Supports India’s push for self-reliance (Aatmanirbhar Bharat) and supply chain diversification.
