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.
