India has taken a strong stand against dumping of cheap imports from China by imposing anti-dumping duties on three Chinese products for five years. The products are wheel loaders, gypsum tiles, and industrial laser machinery. These products are used in various sectors such as construction, interior decoration, and manufacturing.
Wheel Loaders
Wheel loaders are heavy equipment vehicles that are used to load and move materials such as soil, sand, gravel, and rocks. India has imposed a duty of USD 1,000 per unit on wheel loaders imported from China in the form of Completely Built Unit (CBU) or Semi Knocked Down (SKD). The duty was recommended by the Directorate General of Trade Remedies (DGTR), which is the investigation arm of the commerce ministry. The DGTR found that the wheel loaders from China were being exported at a price below their normal value in the Indian market, causing material injury to the domestic industry.
Gypsum Tiles
Gypsum tiles are boards or panels that are used for wall and ceiling decoration. They are usually laminated with paper or plastic on one or both sides. India has imposed a duty ranging from USD 0.25 to USD 0.97 per square meter on gypsum tiles imported from China and Oman. The duty was also recommended by the DGTR, which found that the gypsum tiles from these countries were being dumped in the Indian market at a price lower than their normal value, causing significant injury to the domestic industry.
Industrial Laser Machinery
Industrial laser machinery are devices that use laser beams to perform various operations such as cutting, marking, or welding of metals and non-metals. India has imposed a duty ranging from USD 1,000 to USD 2,000 per unit on industrial laser machines imported from China in fully assembled, SKD, or Completely Knocked Down (CKD) form. The duty was also recommended by the DGTR, which found that the industrial laser machines from China were being exported at a price below their normal value in the Indian market, causing material injury to the domestic industry.
Reasons and Implications
The imposition of these duties follows the recommendations made by the DGTR after conducting separate investigations into the dumping allegations made by the domestic producers of these products. The DGTR is mandated to conduct anti-dumping probes under the multilateral WTO regime to determine if the domestic industry has been hurt by a surge in below-cost imports. As a counter-measure, it can recommend duties to ensure fair trade and provide a level-playing field to the domestic industry.
The anti-dumping duties imposed by India on these three Chinese products are expected to have positive effects on the domestic industry by reducing the unfair competition from cheap imports and increasing their market share and profitability. The duties are also expected to have positive effects on the overall economy by boosting domestic production, employment, and revenue.
The anti-dumping duties imposed by India on these three Chinese products are also indicative of India’s strong stand against dumping and unfair trade practices by China, which is its largest trading partner but also its biggest trade deficit source. India’s trade deficit with China stood at USD 83.2 billion in 2022-23, accounting for more than half of its total trade deficit. India has been taking various measures to reduce its dependence on Chinese imports and promote its self-reliance and competitiveness in various sectors.