Following complaints from the domestic steel industry, the government has initiated an anti-dumping probe on imports of straight length bars and rods of alloy steel from China. Six domestic companies, including JSW Steel, Sunflag Iron and Steel, Usha Martin and Gerdau Steel India, had submitted an application with the Directorate General of Anti-dumping and Allied Duties (DGAD) for initiation of anti-dumping investigation and imposition of the duty on these steel items exported from China.
The commerce ministry’s investigation arm - DGAD, at first glance, said that it has found sufficient evidence of dumping of these products from China. DGAD in its notification stated that the Authority has started investigating the alleged dumping and consequent damage to the domestic industry. In its investigation, the directorate will determine existence, degree and effect of alleged dumping and recommend the amount of anti-dumping duty, which if levied would be adequate to remove the injury to the domestic industry.
These steel products are used in various industries like automobiles, cement, power plants, turbines, shipbuilding, railway, capital goods, and construction machinery. The probation period for the current inquiry is 2016-17. However, for the loss of the domestic industry, the data for 2013-16 will also be taken for scrutiny. India’s exports to China were only $10.17 billion in 2016-17, but imports aggregated $61.28 billion in 2016-17.
Anti-dumping duties are levied to provide a level-playing field to the local industry by guarding against cheap below- cost imports. Increasing imports and dumping of goods from China have always been an area of concern for Indian companies. The DGAD is also probing dumping of several other products such as certain chemicals from the neighbouring country. India is one of the most attractive markets for global producers due to its large middle class population.
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