The government is taking measures to counter the threat posed to the domestic manufacturing sector in India, especially from the small and medium scale segment, from cheap and subsidised Chinese products, the commerce ministrys said today.

India imposed anti-dumping duty on Chinese goods in 22 cases, including final duty in 12 cases and provisional duty in 10 cases, during 2008-09 and 2009-10 (up to November 2009). Final safeguard duty was imposed in 4 cases during the two years, a government release said today.

These duties are in accordance with the Agreement on Anti-Dumping (the agreement on the implementation of Article VI of GATT, 1995), the agreement on subsidies and countervailing measures, and the agreement on safeguards, the release said.

These provisions are aimed at offsetting the adverse effects of 'dumped' imports, 'subsidised' imports or 'increased' imports, it added.

India's merchandise imports from China doubled during the last 3 years to Rs1,47,605 crore ($32.05 billion) during the financial year 2008-09 from Rs1,09,116 crore ($23.69 billion) in 2007-08 and Rs79,008 ($17.16 billion) in 2006-07.        

The government said trade defence measures are available to the domestic industry to counter unfair trade practices followed by exporters of goods from other countries.

In case a product is imported into the country at less than its normal value, and it causes injury to the domestic industry, the domestic industry can make an application to the Directorate General of Anti-Dumping and Allied duties (DGAD) in the department of commerce for imposition of anti-dumping duty, the release said.

Alternatively, the affected industry or unit can make an application for imposition of safeguard duty to the Directorate General of Safeguards under the ministry of finance, in case there is serious injury/market disruption, or threat of series injury/threat of market disruption to the domestic industry, as a consequence of increased imports of an article into the country, the release added.

Under section 3 (2) of Foreign Trade (Development and Regulation) Act, 1992, the central government has an inherent power to impose restrictions on import of goods.

The Customs Tariff Act, 1975 includes provisions for providing relief to the domestic producers against injury caused to them by imports.