Dumping vs. Fair Trade: India's Response with Anti-Dumping Duties

Out of the 46 anti-dumping duties levied by the finance ministry in the last three years 60 per cent targeted goods originating only in China.

What Is Dumping?

Dumping is an international trade practice where a country exports a product at a price lower than its normal value in its domestic market. This can harm the domestic industry in the importing country by undercutting local businesses and distorting market competition.

India's Anti-Dumping Mechanism:

1. The Directorate General of Trade Remedies (DGTR) investigates dumping complaints brought forward by domestic industry players. If dumping and consequent injury to the domestic industry are found, the DGTR recommends an Anti-Dumping Duty (ADD).
2. The Central Board of Indirect Taxes and Customs (CBIC) then has three months to accept or reject the DGTR's recommendation. The imposition of ADDs is permitted under the World Trade Organization's (WTO) rules as a trade remedial measure.

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