India slaps anti-dumping duties on Chinese products as tensions over market access persist

India has slapped anti-dumping duties on four Chinese products, including vacuum flasks and aluminium foil, in a bid to protect domestic manufacturers from a flood of cheap imports.

In a series of notifications issued this month, the Central Board of Indirect Taxes and Customs confirmed that the duties would apply to imports of soft ferrite cores, vacuum insulated flasks, aluminium foil, and trichloro isocyanuric acid– a chemical used in water treatment.

The move follows investigations by the Directorate General of Trade Remedies (DGTR), the commerce ministry’s trade watchdog, which found these items were being dumped into the Indian market at prices below fair value.

For most of the products, the duties will remain in place for five years. In the case of aluminium foil, however, the duty– set at up to $873 per tonne– will apply provisionally for six months.

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Soft ferrite cores, which are essential components in electric vehicles, chargers, and telecom devices, will attract an anti-dumping duty of up to 35 per cent of their CIF (cost, insurance and freight) value. Vacuum flasks will be subject to a flat duty of $1,732 per tonne. Trichloro isocyanuric acid imports from China and Japan will now face duties ranging from $276 to $986 per tonne.

The DGTR concluded that these goods were harming local industries by being sold at artificially low prices, undercutting domestic production. Under World Trade Organization (WTO) rules, member countries are permitted to impose such duties when investigations find evidence of dumping and injury to local firms.

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India has frequently used anti-dumping measures as a tool to address its ballooning trade deficit with China, which reached $85 billion in the 2023-24 financial year. Although both countries are WTO members, New Delhi has repeatedly voiced concern over the scale and structure of bilateral trade, which it says is heavily skewed in China’s favour.

China remains India’s second-largest trading partner, but tensions over market access and trade imbalances have persisted despite efforts at broader economic engagement. The latest round of anti-dumping duties is expected to add to an already complex trade relationship.

With inputs from PTI