According to a C-DEP Research and Centre for WTO Studies report titled 'Impact of Anti-Dumping Duties in India', the non-implementation of recommended anti-dumping duties has resulted in an annual economic loss of ₹11,938 crore to the domestic industry. However, the imposition of these levies could generate an additional ₹28,540 crore annually in foreign exchange savings by reducing imports, as reported by Business Standard. The report examines the effects of anti-dumping duties on downstream costs, inflation, MSMEs, domestic capacity, and investments. The report was released today by Pritam Banerjee, Head, Centre for WTO Studies, Ministry of Commerce during a roundtable discussion with industry leaders from the chemicals, polymers, textiles and manufacturing sectors, with these industries together representing more than ₹2 lakh crore in turnover.
A study of 33 products shows that economic loss from dumped imports in the current period is about ₹1.54 lakh crore, and is projected to rise to ₹2.68-2.70 lakh crore by 2030, according to the C-DEP Research report. The report indicates that jobs loss from dumped imports is increasing from around 24,000 at present to 38,000-42,000 by 2030 due to import-driven market distortions. The Directorate General of Trade Remedies (DGTR) under the commerce ministry conducts investigations into alleged dumping as a quasi-judicial authority, while the finance ministry takes the final decision to impose these duties. The report notes that committed domestic investment currently stands at ₹1.25 lakh crore, while another ₹1 lakh crore investment will be needed by 2030 to meet future demand. Additionally, the report estimates that enforcing anti-dumping duties on products currently under government evaluation could support domestic investments worth ₹70,000 crore.
The report reveals a notable shift in implementation patterns, with rejection and non-implementation rates rising sharply. The rejection ratio increased to 81% during November 2025-April 2026 from 16% during April-November 2025, as reported by Business Standard. However, the report also highlights that between 1991 and mid-2020, about 99.5% of DGTR recommendations were implemented by the government. Anti-dumping duties are WTO-compliant trade-remedy instruments that protect domestic manufacturers from predatory pricing by foreign exporters who dump products at prices lower than their home country. The report noted that anti-dumping duties in the US remain in force for an average of 16.26 years before withdrawal, while in India, it is only 6.97 years. India's duty rates generally remain in the 5-12% range, while the US imposed duties of over 600% on melamine imports from India, and China imposed duties of 166.2% on Cypermethrin. The report also states that India's use of anti-dumping duties remains moderate compared to several other countries, with the average duration of anti-dumping duties in India standing at 6.97 years, lower than the global average of 11.19 years.
The report emphasizes that concerns over anti-dumping duties raising consumer prices and inflation are overstated, while the costs of not acting are becoming increasingly visible. An analysis of 56 cases where duties were recommended but not implemented showed that the median impact on final consumer prices would have been just 0.023%, while in more than 91% of cases the impact would have remained below 0.10%. Similarly, the study found that duties on 21 products currently awaiting final notification would have an almost imperceptible effect on inflation. Even under a conservative assumption that half the increase in input costs is passed on to consumers, the combined impact on headline inflation would be less than 0.0096 percentage points. The report concludes that delayed implementation of anti-dumping duties is weakening domestic manufacturing ecosystems, particularly among MSMEs, citing examples from sectors such as nylon filament yarn, sublimation paper, cable ties, ceramic ware and PVC flex films, where domestic producers have either shut operations or come under severe stress because of dumped imports.
The report documents significant sectoral consequences of dumped imports, with sustained dumped imports forcing shutdowns in sectors such as sublimation-transfer paper, mobile phone back covers, DASDA and Nylon Filament Yarn. In the Nylon Filament Yarn segment alone, reported closed capacity totals 29,450 metric tonnes across multiple units. However, sectors where anti-dumping duties were imposed — including cable ties, ceramic ware, fishnets, vacuum flasks and PVC flex films — saw MSMEs stabilise operations and attract fresh investment. The cable ties sector expanded from 3-4 domestic producers to more than 15 after duties were imposed. The report also cites Penicillin G as a warning example, saying Chinese dumping between 2003 and 2011 led to the collapse of India's domestic manufacturing capacity for the antibiotic ingredient, increasing dependence on imports later. The report concludes that timely implementation of anti-dumping duties recommended by DGTR would help protect domestic manufacturing capacity, reduce import dependence, support industrial investments and strengthen India's economic resilience over the long term. It calls for the notification of pending DGTR recommendations and a transparent public-interest framework whenever the government decides not to implement a recommended duty.
