New Delhi: India has decided to impose an anti-dumping duty on a key water treatment chemical imported from China and Japan. The move aims to protect domestic manufacturers from cheap imports that could harm local industries.
The finance ministry announced that the duty will be effective for five years and will apply to Trichloroisocyanuric Acid (TCCA), a chemical widely used in water purification and industrial cleaning. The decision follows a recommendation from the Directorate General of Trade Remedies (DGTR), which found that low-cost imports were affecting Indian manufacturers.
Why India Imposed an Anti-Dumping Duty
The DGTR, which investigates cases of unfair trade practices, conducted an inquiry and found that imports from China and Japan were being sold at very low prices, causing financial harm to Indian businesses.
As a result, the government has imposed a duty of up to USD 986 per tonne to ensure fair competition in the market. The duty is expected to create a level playing field for local manufacturers and reduce unfair price competition from foreign companies.
What is Trichloroisocyanuric Acid?
Trichloroisocyanuric Acid (TCCA) is a chemical mainly used for:
- Water purification in swimming pools and drinking water
- Industrial cleaning and disinfectants
- Textile and paper bleaching
Since TCCA is in high demand, cheaper imports from China and Japan were undercutting local production, forcing Indian manufacturers to sell at lower prices or suffer losses.
How Anti-Dumping Duties Work
Anti-dumping duties are imposed by governments when imported products are sold at a price lower than their normal value, harming the domestic industry. These measures help prevent unfair trade practices and protect local businesses.
India follows World Trade Organization (WTO) guidelines while imposing such duties. The DGTR conducts investigations, and the finance ministry makes the final decision within three months of receiving the report.
Impact on Trade and Economy
China and Japan are major trading partners of India, but unfair pricing in imports can harm Indian industries. By imposing this duty, India aims to:
- Encourage domestic production of water treatment chemicals
- Reduce dependency on foreign imports
- Protect local businesses from unfair competition
The government clarified that anti-dumping duties are not meant to block imports but to ensure that they are sold at fair market prices. The new duty will help Indian manufacturers compete on better terms while still allowing imports at reasonable prices.
With this five-year anti-dumping duty, India aims to create a fair trade environment and support domestic industries. The move ensures that Indian manufacturers remain competitive while maintaining a balance in trade relationships with China and Japan.
