Anti-Dumping Duty

Impact: Positive (domestic companies involved in producing certain import substitutes) / Negative (domestic companies importing these product)

India’s imports for the past six months has been growing at an average of 30%. As a result, trade deficit reached $40 billion in Q1, FY18, which was $18 billion during the same period the previous year. Amidst higher trade deficit, the Director General of Anti-Dumping and Allied Duties (DGAD) is planning to impose anti-dumping duties on additional 54 items based on complains filled by the domestic industry. India has already imposed anti-dumping duties on 141 cases – country wise 277 cases. Imposition of anti-dumping duties will protect the domestic companies that are involved in the production of certain import substitutes, manufacturing technology and raw material for which is domestically available. However, this decision will increase the cost of final product for the demand side. Total imports by the industries is collectively pegged at $120 billion, which is nearly 30% of the overall merchandise import. Therefore, SMERA believes that despite a short margin impact, imposing anti-dumping duties in these products will reduce import dependency of concerned industries. On a macro level, substantial improvement in the overall balance of trade is expected and this will also be a positive sentiment builder.

Product wise anti-dumping duty:

Product Category

No. of cases in which duty is in force

No. of Cases initiated

Imports ($ bn)

Chemical and Petrochemicals

67 (143)

30 (71)

34.17

Electrical and electronic items

06 (09)

00 (00)

53.01

Fibre Boards

03 (10)

01 (04)

-

Fibres and Yarn

12 (25)

07 (26)

2.83

Glass and Glassware

07 (12)

01 (02)

1.05

Machinery Items

05 (09)

01 (01)

3.04

Pharmaceutical

13 (14)

02 (02)

5.00

Rubber or Plastic products

07 (09)

04 (08)

2.04

Steel and other metals

17 (38)

03 (08)

10.97

Other Products

04 (08)

05 (09)

8.24

Total

141 (277)

54 (131)

120.34

Source: Director General of Anti-Dumping and Allied Duties, Ministry of Commerce, SMERA Research

Note: item spread over to the number of countries is given in parenthesis, (-) indicates imports data not available


Anti-dumping duty on imports from countries:

Country

No. of Initiations since 01.01.2012

China PR

62

Indonesia

11

Malaysia

11

Thailand

10

Other countries

129

Total

223

Source: same to the above table

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