The Indian government has become alert to the increasing incidents of dumping in the domestic market by countries like China and Vietnam. Commerce Secretary of the Ministry of Commerce S. Krishnan said in a recent statement that the government is evaluating such strategies and quick action will be taken if necessary. Dumping has a negative impact on domestic industries, making the government feel the need to intervene.Dumping is a process in which a country exports its products to another country at an extremely low price — sometimes even below cost. The purpose is to drive local manufacturers out of competition so as to establish a monopoly in that market. China and Vietnam have often been accused of flooding the Indian market with their cheap products.S. Krishnan said, “We are keeping an eye on the activities taking place in the market. If it is found that some countries, especially China and Vietnam, are harming Indian industries through dumping, we will take appropriate action under the WTO rules.”He further said that the government is analyzing the complaints received from domestic producers and necessary action is being taken on them. If clear evidence of dumping is found in any sector, the process of imposing anti-dumping duty can be started.Many sectors in India have complained of being affected by dumping, the major ones being steel, textiles, electronics, toy manufacturing, and chemicals. Domestic producers are saying that they cannot produce goods at such cheap prices, due to which their sales are falling drastically and employment is also being affected.The government is working on two major strategies to deal with this challenge, which include investigation & analysis and imposition of anti-dumping duty. Investigations are being carried out continuously by the Ministry of Commerce and DGTR (Directorate General of Trade Remedies). If evidence of dumping is found on any product, a notice is to be issued against the concerned country. The government has already imposed anti-dumping duty on many products. Its purpose is to balance the price of those products so that domestic industries get a level playing field.S. Krishnan indicated that the government is giving top priority to protecting domestic industries to make campaigns like “Make in India” and “Atmanirbhar Bharat” successful. He said that it is necessary to maintain international trade balance, but when foreign companies adopt unfair methods, then the government has to intervene.Talking on this topic, Vikas Dahiya, a political analyst at Bluekraft, said, “Dumping is becoming a serious challenge for Indian industries, and the government now seems ready to take a tough stand on it. S. Krishnan’s statement is reassuring for domestic industries and indicates that India will not shy away from taking necessary steps to protect its economic interests.It will be interesting to see what concrete decisions the government takes in this direction in the coming months and how the rules are further tightened to curb foreign dumping.”
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