In the world of global trade today, safeguarding local industries against hostile overseas competition is the number one concern of governments across the globe. Among the most powerful weapons they wield is the Anti-Dumping Duty (ADD). But what is it, and why should Indian investors, enterprises, and even consumers pay attention? This blog explains in a nutshell.

What is Anti- Dumping Duty?

Anti-Dumping Duty is a protectionist duty that a home government levies on international imports that are being sold at a lower price than the market value. Dumping refers to the act by which foreign businesses sell their product cheaper in another country than in their home country (or lower than their cost of production).

Real-Life Example

Suppose a Chinese steel company sells steel in China for ₹60/kg and exports it to India for ₹40/kg. Indian steel makers are unable to compete with this below-market price. The Indian government can levy an anti-dumping duty of ₹20/kg to offset this unfair competition.

Why is Anti-Dumping Duty Important?

Aspect	Impact of Anti Dumping Duty
Protect Industries	Keeps domestic manufacturers from shutting down
Prevents Job Loss	Secures employment in vulnerable sectors
Ensures Fair Trade	Discourages predatory pricing by foreign firms
Promotes Growth	Encourages local production and self-reliance

Understanding the Process of Imposing Anti Dumping Duty in India

The process is regulated under The Customs Tariff Act, 1975 and Anti-Dumping Rules, 1995, and includes:

• Complaint Filing – A complaint by domestic industry is filed with Directorate General of Trade Remedies (DGTR).
• Investigation – DGTR investigates the dumping and injury to local producers.
• Provisional Duty – Temporary ADD is applied if necessary during the ongoing investigation.
• Final Decision – Final ADD is imposed based on findings, typically for 5 years.

Countries Affected Most by India’s Anti-Dumping Duties

Country	Commonly Dumped Products
China	Steel, Solar Panels, Textiles
South Korea	Electronics, Steel Products
USA	Chemicals, Machinery
Thailand	Rubber, Plastic Products

Difference Between Anti-Dumping Duty and Safeguard Duty

Parameter	Anti Dumping Duty	Safeguard Duty
Based On	Unfair Pricing	Sudden Import Surge
Purpose	Counteract Dumping	Temporary Protection
Investigation Needed	Yes	Yes
Duration	Usually 5 Years	Temporary (max 5 Years)

Notable Cases of Anti Dumping Duty in India

Product	Country	Anti Dumping Duty	Imposed In
Solar Panels	China, Malaysia	₹5 – ₹30 per watt	2018
Tyres	China	₹1000 – ₹3000/unit	2017
Steel Products	Multiple	₹1500 – ₹4000/tonne	2020

Final Thoughts

Anti-Dumping Duty is not merely a tax—it’s a mechanism to safeguard economies, save jobs, and ensure equity. With increasing tensions in global trade and India’s drive towards Atmanirbhar Bharat (Self-Reliant India), be prepared for more such policies to protect national interests. As an investor, businessperson, or simply an interested reader, knowing how ADD operates puts you at a disadvantage when it comes to cracking the code of international trade.