India gains 88,000 Cr annually from strategic anti-dumping duties

India’s economy is witnessing a substantial annual benefit of Rs. 88,000 crore, thanks to the effective implementation of anti-dumping duties, according to new reports released today by the Centre for Domestic Economy Policy Research (C-DEP.in) and the Centre for World Trade Studies at the Ministry of Commerce. The findings were unveiled at the National Conclave on Strengthening Atmanirbharta.

Anti-dumping duties serve as a critical tool to protect Indian manufacturers from unfair trade practices, particularly predatory pricing by foreign exporters. These exporters often dump goods in the Indian market at prices lower than their actual cost of production, causing injury to domestic industries. The “injury margin”, the gap between fair manufacturing costs and the dumped price, directly impacts the viability of Indian manufacturers.

The Directorate General of Trade Remedies (DGTR) is tasked with conducting thorough and transparent investigations into dumping cases. Based on these inquiries, duties are levied to neutralise the unfair advantage and restore a level playing field for domestic producers. Without such safeguards, domestic industries face under-utilisation of production capacities, resulting in job losses, lower tax revenues, and broader economic distress.

The reports quantify the economic gains by evaluating the rise in domestic manufacturing capacities in specific sectors following the imposition of anti-dumping measures. By restoring competitiveness, these duties help revive idle or underperforming units, bolster employment, and enhance tax contributions to the exchequer.

A second report released at the conclave, titled "Economic Impact of Dumped Imports on the Indian Economy," highlights the severe repercussions of delayed or absent trade remedies. It estimates that predatory imports in select sectors have caused a staggering economic loss of ₹1,50,000 crore over the past four years. These losses stem from shutdowns, idle capacities, and cascading impacts on related industries.

The report also draws attention to the harmful effects of procedural delays in implementing anti-dumping duties. When there is a lag in enforcement, foreign suppliers often increase the volume of dumped goods, aggravating the damage to Indian industries. This has been particularly evident in the case of products like Insoluble Sulphur, PEDA, Pretilachlor, KTB, STB, PX-13, TDQ, and Sulphenamide accelerators, among others.

The findings reinforce the pivotal role of trade remedies in sustaining India’s industrial base and employment landscape. As the country advances toward its Atmanirbhar Bharat (self-reliant India) vision, timely and judicious use of anti-dumping measures is indispensable. They not only ensure fair competition but also help unlock the true potential of domestic manufacturing.