Modi government imposes anti-dumping duty on Chinese goods
What's the story
India has imposed an anti-dumping duty on four Chinese products: soft ferrite cores, vacuum insulated flasks, aluminum foil, and trichloro isocyanuric acid. The Central Board of Indirect Taxes and Customs (CBIC) said these duties, which will be applicable for five years for most products, range from $276 to $1,732 per ton. However, the duty on aluminum foil is provisional and set for six months. This move is intended to protect domestic industries from the effect of cheap imports from China.
Product impact
Impact on specific products
The government has imposed up to 35% duty on imports of soft ferrite cores, which are used in electric vehicles, chargers, and telecom devices. A hefty anti-dumping duty of $1,732 per ton was also levied on vacuum insulated flasks. These duties were imposed on the recommendations of the Directorate General of Trade Remedies (DGTR), an investigative arm under the Ministry of Commerce.
Trade measures
Purpose of anti-dumping duties
Countries conduct anti-dumping investigations to ascertain if domestic industries have been hurt by an influx of cheap imports. On such findings, nations impose these duties under the multilateral framework of the World Trade Organization (WTO). The main aim is to ensure fair trading practices and level playing field for local producers vis-a-vis foreign exporters.
Trade dynamics
India's ongoing trade relationship with China
Both India and China are WTO members, with China being India's second-largest trading partner. The Indian government has always raised serious concerns over the increasing trade deficit with its neighbor, which was at $85 billion in 2023-24. This latest move to impose anti-dumping duties is part of India's continuous efforts to address these concerns and safeguard domestic industries from unfair competition.