India has imposed anti-dumping duties on four products imported from China to protect local manufacturers from cheap foreign goods. These products include vacuum flasks, aluminium foil, soft ferrite cores and a chemical used in water treatment.

The Central Board of Indirect Taxes and Customs (CBIC) issued several notifications this month confirming these duties. The affected chemical, trichloro isocyanuric acid, is commonly used for water treatment. By imposing these duties, India aims to prevent excessive imports that could harm domestic industries. The decision comes after investigations by the Directorate General of Trade Remedies (DGTR), which is the trade watchdog of the commerce ministry. The DGTR found that these products were being sold in the Indian market at unfairly low prices.

For most of the items, the anti-dumping duties will be in effect for five years. However, in the case of aluminium foil, the duty—set at up to $873 per tonne—will be applied temporarily for six months. Soft ferrite cores, which are crucial for electric vehicles, chargers and telecom devices, will now have an anti-dumping duty of up to 35% of their CIF (cost, insurance, and freight) value. Vacuum flasks will face a fixed duty of $1,732 per tonne. Meanwhile, imports of trichloro isocyanuric acid from China and Japan will be charged duties ranging from $276 to $986 per tonne. The DGTR found that these products were being sold at unfairly low prices, hurting local industries by making it hard for them to compete. According to WTO rules, countries can impose such duties if an investigation proves that dumping is happening and harming domestic businesses.

India has often used anti-dumping measures to tackle its growing trade deficit with China, which reached $85 billion in the 2023-24 financial year. Both countries are members of the WTO, but New Delhi has repeatedly raised concerns about the imbalance in trade, saying that it is largely in China's favour. China is still India’s second-biggest trading partner, but there have been ongoing issues with market access and trade imbalances. Despite efforts to strengthen economic ties, these problems continue. The recent anti-dumping duties are likely to make the trade relationship even more complicated.