New Delhi, September 9 - Even though cheaper imports worth $27 billion from neighbouring China have helped contain inflationary pressures on the Indian economy by stemming domestic prices, the Government is thinking of imposing anti-dumping and safeguards duties on these imports.Why? In the long term, these imports may jeopardise the domestic industry.

In a recent meeting, the high-powered Committee of Secretaries (CoS) chaired by cabinet secretary K M Chandrasekhar said imports from China had galloped pace from $11 billion to $27 billion in the last three years. The committee has favoured imposition of duties to discourage the rising trend.

Chandrasekhar is understood to have asked the Department of Industrial Policy and Promotion (DIPP) to advise manufacturers, associations and other stakeholders to discuss this issue with the finance ministry for taking a suitable action.

Among all the countries in the world, India imposed the maximum measures and ordered the highest number of probes (31) into dumping of goods from different countries, including China, during July 1 to December 31, 2007, according to the World Trade Organisation.

Chinese products faced the maximum number of anti-dumping measures, accounting for nearly half (26) of the 58 new measures. China was most frequently subjected to new investigations, with 40 measures directed at its exports between July and December 2007, slightly up from the 39 investigations on exports from China that were reported for the corresponding period of 2006.

The automobile component manufacturers have complained that they are facing stiff competition from cheaper Chinese imports and sought the government’s intervention. Similarly, tyre imports from China have gone up by 1300 per cent over the last five years. Automotive Tyre Manufacturers Association is also asking the government to impose an anti-dumping duty on import of Chinese radial tyres for trucks and buses. The government imposed anti-dumping duty on import of Diclofenac Sodium from China, which would remain effective up to October 9, 2008.

Dumping Down

The Chinese products have faced the maximum number of anti-dumping measures in India

Sectors that are hit hard are machinery and equipment, chemicals, textiles, base metals and auto components

Cabinet Secretary calls for discussions to take suitable action against cheap Chinese imports.