India Imposes Anti-Dumping Duties to Curb Cheap Chinese Imports

March 25, 2025

India has recently introduced anti-dumping duties on five products imported from China. This decision aims to protect local industries from unfair competition posed by low-priced imports.

What are anti-Dumping Duties?

Anti-dumping duties are tariffs imposed on foreign imports believed to be priced below fair market value. These measures are in line with World Trade Organization (WTO) regulations. India has a growing trade deficit with China, which reached USD 85 billion in 2023-24. The Government of India is taking steps to safeguard its domestic industries.

Products Affected by the Duties

The imposed duties target specific goods. For Soft Ferrite Cores, used in electric vehicles and telecom devices, a duty of up to 35% of the CIF value will apply. Vacuum insulated flasks will face a duty of USD 1,732 per tonne. Aluminium foil imports will incur a provisional duty of up to USD 873 per tonne for six months. Trichloro Isocyanuric Acid will have duties ranging from USD 276 to USD 986 per tonne.

Process of Imposing Duties

The Directorate General of Trade Remedies (DGTR) investigates claims of dumping. It assesses injury to domestic industries caused by low-priced imports. The analysis includes both volume and price effects of the dumped goods. If injury is established, anti-dumping duties can be recommended. The Ministry of Finance then decides on the levies.

Legal Framework of Dumping

Dumping is defined as selling goods in a foreign market at lower prices than in the domestic market. The WTO describes it as a form of international price discrimination. To determine dumping, a comparison of prices between the exporting and importing countries is necessary. This process is complex and involves calculating the normal value and export price.

Implications of Anti-Dumping Measures

Imposing anti-dumping duties can help restore fair competition. It protects domestic industries from being undercut by cheaper imports. However, it can also lead to trade tensions between countries. Critics argue that such measures can hinder free trade and lead to retaliatory actions.

Global Perspective on Dumping

Dumping is a contentious issue in international trade. Countries like China have been accused of engaging in dumping practices. These practices are often supported by government subsidies and low labour costs. Such competition can threaten jobs and businesses in importing countries, leading to calls for protective measures.

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