the story So Far: US President Donald Trump’s ‘Liberation Day’ Tariff and China’s Radio Tariff have inspired the apprehensions about the countries running their exports in the big consumer market in India. Reports states that the Ministry of Commerce and Industry isware of any possible increase in imports of farm yield from the US and manufactured goods from China, Vietnam and Indonesia in other countries.
What is worrying about dumping?
President Trump’s tariff regime made it difficult to sell in the US in countries, they could potentially see India’s large consumer market to settle their goods. This is especially true about the objects that are either produced in their factories beyond their domestic consumption or have great importance to their overall economic and/or export ambitions.
In the light of current conditions, two notable examples, where it can complete the dynamic Bangladesh’s readymade textiles and textile industry and Indonesia’s electronic equipment industry. The former is the second largest apparel manufacturer in the world, with the sector 80% of its exports. According to the International Labor Organization (ILO), Indonesia’s electronics industry has been a major driver of their economic growth and employment. Now with increased tariffs, countries can be for possible discovery of alternative markets to sell their products.
According to observers, China can also seek the way to deal with its manufacturing overcapacea. China’s trade review of the World Trade Organization (WTO) was published in July last year, estimating that a “major global manufacturing center” has developed in recent decades. This attributed it to trade and investment liberalization among other factors as well as abundant and productive labor, high quality infrastructure. However, the member countries felt that the Chinese government, especially the state -owned enterprises, “subsidies to promote deformed global markets and promotion”. The World Trade Organization noted in the review that the manufactured goods are more than 95% of China’s exports. In March, Chinese customs data indicated the US as its largest export destination. However, Beijing is now looking towards other markets.
Why is the US form important?
This is an area where tariff danger can also have a possible reverse effect on Washington with results for India. According to the US Department of Agriculture, China was the third largest export destination for its agricultural products. However, exports fell 15% on a year-on-year basis in 2024 to $ 24.7 billion due to “growing competition” for US soybean and corn from South America. Keeping in mind the retroctural tariffs of Beijing in the US, the produce of the North American country, especially soybean and corn, can look for a market in India.
Which areas will be affected?
According to Ajay Srivastava, founder of Think-Tank Global Trade Research Initiative (GTRI), most risk areas include chemicals, steel, aluminum, textiles, plastic, rubber, electronics and consumer goods. Many of these are already investigating the Director General of Trade Treatment (DGTR) with the Directorate General.
An important example is the domestic steel area where emotions have been married due to dumping-inspired downward amendment in prices. Preliminary findings of the anti-dumping investigation published in March blamed the “trade turn” as a “major reason” for the increase in imports of some steel products due to the protective measures taken by the US and the European Union (starting from 2018). DGTR argued that large steel producing economies such as Japan, South Korea and China organized high steel productive capacity, which was higher than their domestic consumption. Thus, to curb the spike in imports, DGTR recommended a provisional security fee of 12% for 200 days in March. In the chemical sector, DGTR concluded earlier this year that China was dumping titanium oxide, which was used in cosmetics and paints, in the country and to “injure the domestic sector”.
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Mohit Singla, Founder President at India’s Trade Promotion Council (TPCI), told Hindu Consumer products will face especially “lots of dumping”. Even more importantly, Mr. Singla indicated that any potential dumping would especially disturb small industries (such as textiles), which are very distributed and difficult to organize together. “For small industries and MSMEs, it is almost impossible for small industries and MSMEs to fight a bounce in imports until the government takes cognizance of such imports growing,” he saw. It is accompanied by large industries, with less players and closely monitored, joining hands to cooperate to cooperate for safety.
In a large context, Mr. Srivastava said that while the risk from dumping is real, they are likely to be manageable. He regularly implements India, dumping anti-dumping duties on the products of China, Korea and European Union, and is facing similar tasks abroad. He said, “These duties usually cover a small portion of total imports, so dumping may increase in some areas, comprehensive economic impacts should be limited to existing safety measures,” he said.
Can dynamics be reversed?
Observers have indicated that it is unlikely that Indian firms will be able to reduce the impact of dumping by improving the quality of their products or by offering competitive pricing. Apparel Export Promotion Council (APEC) General Secretary Mithileshwar Thakur explained Hindu That dumping cannot be counted by competitive pricing because the margin is “giant”. He said that only business measures such as safety measures, counterswelling measures and/or anti-dumping duties will be helped. “(By any pricing amendment or other means) you can grow up to 10–15% and ever 100% in competition. It is impossible to combat dumping by improving competition,” he said.
Mr. Thakur said that APEC has already expressed concern about possible dumping in the field with the Ministry of Commerce and Industry. An anti-dumping duty proposes to correct the deformed impact of inappropriate business practices that put the goods exported to another country in dumping, in other words, in other words, in other words, in other words. Try to reduce the effects of sudden increasing security. Shri Singla said that dumping anti-dumping duties are usually a “entire” and semi-judic process. He suggests that given a security duty to address an increase in imports, which can be placed “bus” by assessing trends over a period of six months.
Published – April 20, 2025 02:02 AM IST
