Anti-Dumping Duty In India: A Critical Analysis Of Its Effectiveness In Protecting Domestic Industries While Promoting Fair International Trade
- IJLLR Journal
- 50 minutes ago
- 2 min read
Sridhanya A, LL.B., KMC College of Law
ABSTRACT
This research mainly focuses on the concept of Dumping which is an unfair trade practices under the international trade. It also focuses on the Anti- Dumping Duty imposed in India to prevent unfair trade practices. Due to Globalization, the imports and exports between the countries are increasing. In this situation, the import of foreign goods at low price may threatens the domestic manufacturers. The concept of importing foreign goods at lower price is known as Dumping. Therefore, Anti-Dumping Duty acts as a tool to protect the domestic producers. This research examines the legal framework related to Anti-Dumping Duty in India, its implementation and the role of Directorate General of Trade Remedies (DGTR). This research particularly examines the India’s legal framework regarding Anti-Dumping Duty based on the Customs Tariff Act,1975, the related Anti-Dumping Rules and the WTO Anti-Dumping Agreement which is applicable internationally. The main objective of this study is to critically examine to what extent the Anti- Dumping Duties are successful in protecting the competition of domestic markets in India. Anti-Dumping Duty can be a shield to the domestic producers in preventing unfair price competition by foreign companies in India. At the same time, Anti-Dumping Duty may raise the price of the imported goods. As a result, the consumers, importers, import reliant businesses are financially get affected. Eventhough the Anti-Dumping Duty protects the fair trade, there is a possibility for the excessive use or misuse of this can become a trade barrier. Because of this, the balance between the protection of domestic industries and free international trade becomes important. This study compares the benefits and drawbacks of Anti- Dumping Duty on the consumers, domestic producers and global trade. This study covers both legal framework of Anti-Dumping Duty and practical effectiveness in India. This study also examines how the Anti-Dumping Duty is effective in protecting domestic industries and at the same time examines whether the Anti-Dumping Duty supports international trade or restricts it. This research studies how the anti-dumping duty works practically, the problems faced while implementing this duty and the pros and cons of the anti-dumping duty. Finally, this research looks whether the balance can be maintained between the protection of domestic industries and avoiding adverse effects on consumers and international trade.
Keywords: Anti-Dumping Duty, Globalization, International trade, Domestic Industries, Consumers.
