India has imposed anti-dumping duties on five products imported from China, including aluminium foil, to safeguard its domestic industries from the adverse effects of cheaper imports. The move aims to create a level playing field for Indian manufacturers who have been struggling due to the influx of low-cost Chinese goods.
Products Affected by Anti-Dumping Duties The Indian government has targeted the following products with trade restrictions:
- Aluminium Foil – A provisional duty of up to USD 873 per tonne has been imposed for six months.
- Trichloro Isocyanuric Acid – Used for water treatment, this product now faces an anti-dumping duty ranging from USD 276 per tonne to USD 986 per tonne.
- Soft Ferrite Cores – Commonly used in electric vehicles, chargers, and telecom devices, this product has been subjected to duties of up to 35% on its CIF (cost, insurance, freight) value.
- Vacuum Insulated Flasks – Imports of these products now attract an anti-dumping duty of USD 1,732 per tonne.
- Poly Vinyl Chloride (PVC) Paste Resin – Imported from China, Korea RP, Malaysia, Norway, Taiwan, and Thailand, these products now face duties ranging from USD 89 to USD 707 per tonne.
What Are Anti-Dumping Duties?
Anti-dumping duties are special tariffs imposed on foreign imports that are sold below fair market value. These duties are designed to prevent cheap imports from harming domestic industries. The trade action was based on recommendations from the Directorate General of Trade Remedies (DGTR), the commerce ministry’s investigative arm, which periodically assesses the impact of foreign imports on Indian industries.
Dumping occurs when a producer exports goods to another country at a price lower than their domestic market value, often causing significant losses to manufacturers in the importing country. By imposing these duties, India aims to protect its local businesses and encourage fair competition.
Compliance with WTO Rules India’s decision to impose anti-dumping duties aligns with international trade regulations. The World Trade Organization (WTO) allows member countries to take action against dumping under Article 6 of the General Agreement on Tariffs and Trade (GATT).
The WTO’s Anti-Dumping Agreement elaborates on Article 6, permitting countries to impose additional import duties on specific products from exporting nations. This ensures that the price of imported goods aligns with the “normal value” and mitigates any potential harm to the domestic industry.
India’s Trade Deficit with China
China remains India’s second-largest trading partner, but the growing trade imbalance has raised concerns in New Delhi. In 2023-24, India’s trade deficit with China reached USD 85 billion, reflecting a sharp increase in imports compared to exports. The Indian government has been actively seeking ways to reduce this gap, including through trade restrictions and encouraging domestic production.
The imposition of anti-dumping duties on these five Chinese products is a significant step by India to safeguard its domestic industries. By taking this measure, India aims to promote fair trade practices and reduce dependency on low-cost imports.
