Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

India slaps anti-dumping duty on import of phosphorus pentoxide from China


Mains Paper 3: Economy | Effects of liberalization on the economy

From UPSC perspective, the following things are important:

Prelims level: Phosphorus Pentoxide, Anti-dumping duty, Directorate General of Anti-Dumping and Allied Duties

Mains level: Measures taken by the government to promote internal trade and safeguard Indian industry

Anti-dumping duty imposed

  1. The revenue department has imposed an anti-dumping duty on the import of a chemical from China to protect the domestic manufacturers from cheap shipments
  2. Phosphorus Pentoxide is used as a powerful desiccant and dehydrating agent and is a useful building block and reagent in the chemical industry

Probe by DGAD

  1. The Directorate General of Anti-Dumping and Allied Duties (DGAD) had carried out a probe into the imports of the chemical to ascertain if the shipments were causing injury to the domestic manufacturers of the chemical
  2. After the investigation, the DGAD concluded that the chemical was being exported to India below the normal value and that domestic industry suffered a material injury on account of dumped imports
  3. Based on the recommendation of the DGAD, the revenue department imposed the levy on the import of the chemical from China


Anti-dumping duty

  1. An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value
  2. The Revenue Department in the Finance Ministry imposes anti-dumping duty
  3. It is imposed after following recommendations of Directorate General of Anti-Dumping and Allied Duties (DGAD)
  4. These duties are imposed under the multilateral WTO regime
  5. They are not a measure to restrict imports or cause an unjustified increase in cost of products

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