India's overzealous anti-dumping response may gradually fuel protectionism

Its liberal use of anti-dumping duties risks turning into protectionism - and may do more harm than good

For years, several countries, including India, have worried about imports of cheap Chinese goods undermining local industries. These fears have grown in recent months due to rising United States-China trade tensions. As of June 16, the US has increased the effective tariff on Chinese imports to 55 per cent.

 

The higher costs of selling to the US have raised concerns that China will dump its surplus goods in other markets. In response, many countries, including India, are using trade remedies such as anti-dumping duties (ADDs) to protect themselves.

 

India is now the world’s biggest user of ADDs — not only