Varying Dimensions of India’s National Security by Unknown

Author:Unknown
Language: eng
Format: epub
ISBN: 9789811675935
Publisher: Springer Singapore

Dumping of Chinese Goods in India

Often Indian newspapers are flooded with headlines like ‘25 Chinese items may face an extension of dumping duty’ (Jayaswal, 2020); ‘India may extend anti-dumping duty on carbon black used in rubber industry’ (Indian Express, 2020); ‘Anti-dumping duty imposed on 90 Chinese items’ (The Economics Times, 2020); and ‘India initiates anti-dumping probe into imports of polyester yarn from 4 countries’ (Financial Express, 2020). Such type of incidents is not happening in India; this is prevalent around the world.

According to the World Trade Organisation (WTO), when a company/institution exports/sells its products in a foreign market at a cheaper price than its domestic market, it is called dumping (WTO, 2020). There is no set of regulations that WTO advocates against dumping; however, the international organisation does facilitate the stage on how governments can or cannot react to dumping. Anti-dumping actions are primarily of two types: subsidies and countervailing measures. These measures are only applicable when dumping has a significant impact on the domestic market. The anti-dumping investigation will end (a) if the margin of dumping is less than 2% of the export price of the product; (b) if the volume from one country is less than 3% of total imports of that product; (c) if, in multiple countries, each supply is less than 3% but together accounts more than 7%, the investigation will continue.

As ‘boycotting China’ has been a new trend in Indian social media, history tells a different story altogether. Trade with China constitutes more than 40% of India’s global trade and almost one-sixth of all its total imports (145 Parliamentary Report on the Impact of Chinese Goods on Indian Industry, 2018). India’s export to China has risen significantly by 25.64% in 2018–2019, amounting to $16.75 billion compared to the previous year and India’s import of Chinese products has reduced by 7.94% with $70.32 billion in 2018–2019. Though there is a rise in export and a decline in imports, the trade deficit between India and China is still high, $53.57 billion (Department of Commerce, Ministry of Finance, 2020). Chinese goods control almost every industrial sector in India, more prominently the telecom and power sector. However, the most affected are the labour-intensive industries, which are traditionally the large employment generators (e.g., textile, solar energy). The MSMEs are the worst affected sector by the dumping of Chinese goods, as many of them had to close down. Manufacturers of steel grades of the 200 series can be the best example. Poor-quality Chinese goods are common in almost every Indian household, either agrochemical which impacts the environment or poor-quality toys, colours, firecrackers, religious idols having health hazards.

According to a parliamentary report on the impact of Chinese goods on Indian industries, Chinese non-alloy steels are being imported by declaring it as alloy steel which is value-added and expensive. The same report also highlights that 200,000 Indians could lose their jobs to the dumping of solar panels in the industry (145 Parliamentary Report on Impact of Chinese Goods on Indian Industry, 2018). There

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