Why in News?
Indian chemical industry associations and several ministries have sought a pause on anti-dumping investigations due to rising chemical prices and shortages caused by the West Asia conflict.
What are Anti-Dumping Duties?
- Anti-dumping duties are tariffs imposed on imported goods sold below fair market value to protect domestic industries from unfair competition.
Key Issues Raised
Rising Input Costs
- Anti-dumping duties increase prices of chemical intermediates.
- Impacts downstream sectors such as:
- Textiles
- Footwear
- Packaging
- Auto components
- Paints
Supply Chain Disruptions
- West Asia conflict has caused shortages and price volatility in petrochemicals.
Government Response
- Duty Exemptions: Government of India exempted import duty on 40 petrochemical products till June 30.
Indigenous Manufacturing Push
The Department for Promotion of Industry and Internal Trade (DPIIT) asked industry to explore domestic production of over 200 highly import-dependent petrochemical items.
WTO Trade Policy Review Findings
- 51% of India’s anti-dumping measures relate to chemicals and allied industries.
- China is the main target of these investigations.
India’s Chemical Trade Scenario
- Chemical imports: about $75 billion
- Chemical exports: about $44 billion
- Trade deficit: around $31 billion
[2020] With reference to the international trade of India at present, which of the following statements is/are correct?
1.India’s merchandise exports are less than its merchandise imports.
2.India’s imports of iron and steel, chemicals, fertilisers and machinery have decreased in recent years.
3.India’s exports of services are more than its imports of services.
4.India suffers from an overall trade/current account deficit.
Select the correct answer using the code given below:
a) 1 and 2 only
b) 2 and 4 only
c) 3 only
d) 1, 3 and 4 only
