Dumped imports, particularly from China, are putting significant pressure on India's micro, small and medium enterprises (MSMEs), threatening investments, employment and the long-term viability of domestic manufacturing, according to a report by the Centre for Development and Economic Policy Research (CDEPR). The report, which draws on findings from its broader study titled Impact of Anti-dumping Duties in India, found that several MSME-driven sectors are facing predatory pricing by foreign competitors, leading to capacity underutilisation, financial stress and delayed investment decisions.
The affected segments include sublimation paper, mobile phone back covers, rubber gloves, fishnets, vacuum insulated flasks, persulphates, saccharin and sulphur black. Many of these industries are supported by networks of MSME suppliers, processors, converters and ancillary units. According to the report, the impacted segments account for investments exceeding ₹2,139 crore and have the potential to substitute imports worth around ₹1,749 crore during the period under investigation.
The study highlighted signs of structural distress in several industries. It cited the shutdown of 29,450 metric tonnes of capacity in the nylon filament yarn sector and the closure of multiple sublimation paper MSMEs, while several other units across manufacturing clusters were reported to be operating under severe stress. The report further flagged rising instances of trade circumvention, including product modification and transshipment through third countries, which undermine the effectiveness of anti-dumping measures.
The report argued that a predictable anti-dumping duty framework is critical to ensuring a level playing field, protecting MSME jobs and supporting domestic manufacturing capacity. According to the findings, the current situation threatens the survival of domestic MSMEs and their supporting ecosystems, highlighting the urgent need for policy intervention to maintain India's manufacturing competitiveness.
