Policy Innovations The central address for a fairer globalization

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Globalisation, Trade Flows and Anti Dumping: Recent Indian Experience

By K. Narayanan

October 1, 2005

Coauthor: Lalithambal Natarajan, Research Scholar, Department of Humanities & Social Sciences, Indian Institute of Technology, Bombay.

Abstract: This paper examines the use of the provisions of anti-dumping by India against other countries and the pattern of such actions by others on Indian exports. India has emerged as one of the biggest players in using anti-dumping actions, and most of it, unlike the expectations, is targeted against other developing countries, rather than the developed OECD countries. Also, much of these actions have been in industries where there exists monopoly and high concentration. In contrast, developed countries have raised the maximum objection to Indian exports under the dumping route, and most of it is in industries that have great export potential for India. The analysis presented in the paper, based on data from WTO and the DGAD, Ministry of Commerce and Reserve Bank of India, reveals that the imports of a number of goods are increasing in the post reform period. The increasing imports and lower prices have affected a number of industries. Though both the big and the small firms face the foreign competition, the big firms resort to anti dumping action to fight the imports. The anti dumping actions tend to protect inefficient firms. Moreover, the anti dumping law does not take cognizance of technological and quality differences, but considers only the substitutability between goods. There is a strong need for the inclusion of public interest clause to prevent the misuse of anti dumping legislation. The analysis identifies a clear strategic role for Government in shaping the pattern and rate of growth of trade from the Indian perspective.

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