(MENAFN- KNN India)
New Delhi, Aug 31 (KNN)
In a move aimed at protecting domestic industry, India's Directorate General of Trade Remedies (DGTR) has recommended imposing anti-dumping duties on aluminum foil imports from China.
This decision comes after an investigation revealed that Chinese imports had captured a significant 30% of the Indian market, despite sufficient domestic production capacity.
The inquiry was initiated following a request from Hindalco, one of India's leading aluminum manufacturers, along with other domestic producers including Shyam Sel & Power Ltd, Venkateshwara Electrocast Pvt. Ltd, and Ravi Raj Foils Ltd.
These companies collectively represent about 45% of India's production capacity and 54% of actual production in the sector.
The DGTR's investigation focused on "aluminum foil up to 80 microns, excluding aluminum foil below 5.5 microns for non-capacitor applications."
This product is widely used in packaging for food preservation. The directorate found that Chinese imports were undercutting domestic prices, forcing Indian manufacturers to sell below production costs.
To level the playing field, the DGTR has proposed duties ranging from $619 to $873 per tonne on these imports. However, the final decision on implementing these duties rests with the Ministry of Finance.
This recommendation has sparked a debate within the industry. While domestic aluminum producers welcome the move, downstream manufacturers have expressed concerns.
They warn that imposing duties could lead to higher costs for finished goods, potentially making Indian products less competitive and ironically increasing imports of finished goods from other countries.
The situation underscores the complex balancing act required in trade policy. On one hand, there's a need to protect domestic industries from unfair competition. On the other, there are concerns about the impact on supply chains and end-consumer prices.
This development comes against the backdrop of India's ongoing efforts to reduce its trade deficit with China.
Despite various measures, imports from China continue to rise, reaching over $60 billion in the first seven months of 2024 – a 10% increase from the previous year.
As India navigates these complex trade waters, the government's decision on this anti-dumping duty will be closely watched by both domestic and international stakeholders.
It represents a critical juncture in India's industrial policy and its approach to managing international trade relationships, particularly with its largest trading partner, China.
(KNN Bureau)
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