In the reports released today by the Centre for Domestic Economy Policy Research (C-DEP.in) and by Centre for World Trade Studies, Ministry of Commerce (https://wtocentre.iift.ac.in/), at the annual National Conclave on Strengthening Atmanirbharta, it was revealed that India has had an economic benefit of Rs 88,000 crores due to judicious implementation of anti-dumping duties. The reports can be found at C-DEP.in.
Anti-dumping duties are levied to safeguard the Indian manufacturers from predatory pricing by foreign exporters, who dump the imported products in India at prices that are lower than the true manufacturing cost. The difference between the fair price based on true manufacturing price and the price at which the imports are sold in India, is referred to as the injury faced by the domestic manufacturers.
The government, through Directorate General of Trade Remedies (DGTR), conduct in-depth and transparent investigations into each case of dumping, to come out with the amount of duty to be levied on the imports, in order to provide a level playing field to the domestic players. When an industry suffers from trade injuries due to predatory pricing by foreign players, the production capacities in the domestic industries are under-utilized, leading to economic losses. These losses also translate into job losses and loss in taxes.
By summing up the increase in domestic capacities in selected products, after the implementation of anti-dumping duties by the government on those products, the report has been able to arrive at the economic benefit arising out of the government’s action.
In the second report that was released today, titled “Economic Impact of Dumped Imports on the Indian Economy,” the data-backed analysis revealed that dumped imports on just a few select products resulted in an estimated economic loss of an enormous INR 1,50,000 crores over four years. This figure reflects the economic cost of idle, underutilized or shutdown domestic manufacturing capacities that were impacted by predatory pricing of imports.
The reports demonstrate the strengthening of the domestic industry due to judicious and appropriate implementation of anti-dumping duties. It also delves into the pain faced by industries due to the elongated time for implementing the anti-dumping duties, during which time, the predatory imports exponentially go up as importers start hoarding, thereby increasing the injury to domestic producers. This kind of injury to the industry has been seen in product after product such as Insoluble Sulphur, PEDA, Pretilachor, KTB, STB, PX-13, TDQ, Sulphenamide accelerators and so on.
These findings underscore the critical role of trade remedies such as anti-dumping duties in preserving India’s industrial base, protecting employment, and preventing long-term economic erosion. As India pursues the vision of Atmanirbhar Bharat, the judicious use of anti-dumping measures becomes essential not only to ensure fair competition but also to unlock the full potential of domestic manufacturing.
