Anti-dumping duties

India’s imposition of anti-dumping duties on five Chinese imports marks yet another chapter in its long-running trade friction with Beijing. With a ballooning trade deficit of $85 billion in 2023-24, New Delhi has once again signalled its intent to safeguard domestic manufacturers from predatory pricing by Chinese exporters. The Directorate General of Trade Remedies (DGTR) recommended these duties on Soft Ferrite Cores, vacuum insulated flasks, aluminium foil, trichloro isocyanuric acid and poly vinyl chloride (PVC) paste resin. These products were allegedly being dumped at artificially low prices. This move is not unprecedented. Earlier this month, the DGTR recommended a 12 per cent provisional safeguard duty for 200 days on certain steel products to protect domestic players from a surge in imports. As of January 28, 2019, India had imposed anti-dumping duties on 99 Chinese products, including chemicals, petrochemicals, fibres, yarn, machinery items, pharmaceuticals, rubber and steel items, to protect its domestic industries from unfair trade practices.

While such measures risk inflating costs for domestic consumers, anti-dumping duties are permissible under the World Trade Organisation (WTO) framework. Article 6 of the General Agreement on Tariffs and Trade (GATT) allows countries to counteract dumping to ensure fair competition. Thus, India is well within its rights to take corrective measures. However, anti-dumping duties are only a temporary fix. Chinese exporters often find ways to circumvent such restrictions by rerouting shipments through third countries. Indian industries must use this protective window to boost their competitiveness rather than rely indefinitely on trade barriers.

A more sustainable approach requires deeper reforms — enhanced domestic production capacities, technology upgradation and a focussed strategy to reduce dependence on Chinese imports. As the India-China trade imbalance continues to widen, policymakers must balance protectionist measures with long-term industrial self-sufficiency.