It seems Modi Government has decided to take the bull by the horns. Amid a flip-flop of china on Doklam, Indian government has delivered a huge setback to China by imposing an Anti-Dumping duty on 93 Chinese products.
It’s a known facts that Indian markets are flooded with cheap products from China directly affecting the profitability of the domestic industry. There are many domestic businesses which are on verge of extinction. The India-China trade balance is hugely in the favor of China, currently the trade deficit with China continues to balloon, which is currently over a whopping $51.09 billion.
The issue got highlighted recently when the Leading players of Indian tyre industry met with Ministry Officials and requested Indian government to impose anti-dumping duty on import of Chinese truck and radial tyres.
And finally Indian Government has imposed an anti-dumping duty on 93 products on Wednesday. Commerce and Industry Minister Nirmala Sitharaman submits a written statement in Rajya Sabha where she said that “Anti-dumping duty is in force on 93 products concerning imports from China.”
These 93 products belong to a broad group of chemicals and petrochemicals, products of steel and other metals, fibres and yarn, machinery items, rubber or plastic products, electric and electronic items and consumer goods, among others. In addition, 40 cases concerning imports from China have been initiated by the Directorate General of Anti-Dumping & Allied Duties.
Anti-dumping duty is a protectionist step taken by any government to provide a cushion to domestic companies from an increase in cheap price imports. When a supplier country exports its products to other countries with a selling price below the cost price of the same product in other countries then it is called as dumping of products. This harms the profitability of domestic companies and can destroy the local Manufacturers. Anti-dumping steps are taken to ensure fair trade and provide a level-playing field to the domestic industry.
China has been accused of dump its products in developed and developing economies. It is a tactic which is paying huge dividend to Chinese Economy. It help china capture the domestic market of several countries and it has destroyed the local economies of several African and Asian countries. Many European and African countries have already raised serious concerns over dumping policy of China.
India’s imports from China in 2016-17 have marginally dipped to USD 61.28 billion as against USD 61.7 in 2015-16. Government’s move to impose anti-dumping duties on most of the Chinese products would give relief to domestic players for some time.
Do you support this brave step taken by Modi Government?