29 Jul 2017
Impact: Positive (domestic companies involved in producing certain import substitutes) / Negative (domestic companies importing these product)
India’s imports for the past six months has been growing at an average of 30%. As a result, trade deficit reached $40 billion in Q1, FY18, which was $18 billion during the same period the previous year. Amidst higher trade deficit, the Director General of Anti-Dumping and Allied Duties (DGAD) is planning to impose anti-dumping duties on additional 54 items based on complains filled by the domestic industry. India has already imposed anti-dumping duties on 141 cases – country wise 277 cases. Imposition of anti-dumping duties will protect the domestic companies that are involved in the production of certain import substitutes, manufacturing technology and raw material for which is domestically available. However, this decision will increase the cost of final product for the demand side. Total imports by the industries is collectively pegged at $120 billion, which is nearly 30% of the overall merchandise import. Therefore, SMERA believes that despite a short margin impact, imposing anti-dumping duties in these products will reduce import dependency of concerned industries. On a macro level, substantial improvement in the overall balance of trade is expected and this will also be a positive sentiment builder.
Product wise anti-dumping duty:
Source: Director General of Anti-Dumping and Allied Duties, Ministry of Commerce, SMERA Research
Note: item spread over to the number of countries is given in parenthesis, (-) indicates imports data not available
Anti-dumping duty on imports from countries:
Source: same to the above table