In a move to safeguard local manufacturers from the onslaught of cheap imports, India has imposed anti-dumping duties on six Chinese products this month. The affected goods include PEDA (used in herbicides), Acetonitrile (crucial for the pharmaceutical industry), Vitamin-A Palmitate, Insoluble Sulphur, decor paper, and Potassium Tertiary Butoxide -- each playing a key role across various industrial sectors.
Five-year duty notification
The Central Board of Indirect Taxes and Customs (CBIC), under the Department of Revenue, issued separate notifications announcing that these duties will be applicable for a five-year period. This action came on the heels of recommendations from the Directorate General of Trade Remedies (DGTR), the investigative arm of the commerce ministry that monitors unfair trade practices.
While on PEDA, the duty will range from USD 1,305.6 to USD 2,017.9 per tonne, a duty of up to USD 481 per tonne has been imposed on Acetonitrile imported from China, Russia and Taiwan. Similarly, the government has imposed a duty of up to USD 20.87 per Kg duty on Vitamin -A Palmitate imported from China, the European Union and Switzerland; and up to USD 358 per tonne on the import of Insoluble Sulphur, which is used in the tyre industry, and imported from China and Japan.
Heavy duties on key chemicals
Additional duties of up to USD 1,710 per tonne have been imposed on Potassium Tertiary Butoxide from China and the US. These chemicals are used as a catalyst in Active Pharmaceutical Ingredients (API), other pharma processes, agrochemicals, speciality chemicals and polymers. On decor paper, the levy of up to USD 542 per tonne has been imposed. Anti-dumping probes are conducted by countries to determine whether domestic industries have been hurt because of a surge in cheap imports.
WTO rules and trade measures
As a countermeasure, they impose these duties under the multilateral regime of the Geneva-based World Trade Organisation (WTO). Both India and China are members of the multilateral organisations, which deals with global trade norms. The duty is aimed at ensuring fair trading practices and creating a level playing field for domestic producers vis-a-vis foreign producers and exporters.
Rising trade deficit with China
India is taking steps to boost domestic manufacturing and cut imports from China as the country's trade deficit with China widened to USD 99.2 billion during 2024-25. In the last fiscal, India's exports to China contracted 14.5 per cent to USD 14.25 billion as against USD 16.66 billion in 2023-24. The imports, however, rose by 11.52 per cent in 2024-25 to USD 113.45 billion against USD 101.73 billion in 2023-24.
(With inputs from PTI)