India Imposes Anti-Dumping Duties on Chinese Goods to Protect Local Industries

India has decided to impose anti-dumping duties on five Chinese products to protect its local industries from unfair competition. These duties are meant to stop “dumping,” where products are sold at extremely low prices in foreign markets, often hurting local manufacturers.

The Indian government has applied these duties on Soft Ferrite Cores, vacuum-insulated flasks, aluminium foil, Trichloro Isocyanuric Acid (a water treatment chemical), and Poly Vinyl Chloride (PVC) Paste Resin. These products were being imported from China at prices lower than their actual value, affecting Indian manufacturers.

Details of the Anti-Dumping Duties

• Soft Ferrite Cores (used in electric vehicles, chargers, and telecom devices) – 35% duty on the CIF (cost, insurance, freight) value.
• Vacuum-Insulated Flasks – USD 1,732 per tonne duty.
• Aluminium Foil – A temporary duty of up to USD 873 per tonne for six months.
• Trichloro Isocyanuric Acid – A duty between USD 276 and USD 986 per tonne on imports from China and Japan.
• PVC Paste Resin – Duties ranging from USD 89 to USD 707 per tonne on imports from China, Korea, Malaysia, Norway, Taiwan, and Thailand for five years.

The Central Board of Indirect Taxes and Customs (CBIC) announced that duties on Soft Ferrite Cores, vacuum flasks, and Trichloro Isocyanuric Acid will last for five years. These duties were introduced based on recommendations from the Directorate General of Trade Remedies (DGTR), which investigates whether cheap imports harm Indian businesses.

India follows World Trade Organization (WTO) rules, ensuring that these measures align with international trade regulations.

India-China Trade Relations

India and China have a complex economic relationship. While China is India’s second-largest trading partner, India has a trade deficit of USD 85 billion (2023-24), meaning it imports far more from China than it exports.

The Indian government has taken similar anti-dumping measures in the past to protect its local industries and ensure fair competition. This latest move reinforces India’s commitment to supporting domestic businesses against unfair trade practices.