Crisil Forewarns Of Chinese Dumping Of Electronics In India

(MENAFN- KNN India) New Delhi, April 16 (KNN) The risk of Chinese electronics manufacturers dumping products in the Indian market has significantly increased as trade tensions between the United States and China continue to escalate.

Chinese companies are actively exploring opportunities to expand their presence in India by offering substantial discounts to Indian buyers, aiming to compensate for declining sales in the American market.

A recent report by Crisil Ratings has acknowledged the risk of potential electronics dumping from China into India.

Dumping refers to the practice of selling goods in foreign markets at prices below their production costs or at prices lower than those charged in other countries, often with the objective of gaining market share or clearing excess inventory.
"The top Chinese exports to the US, including electronics, machinery and textiles, are particularly vulnerable to dumping and their influx into the Indian market could impact domestic industries," stated the Crisil Ratings report.

Commerce Secretary Sunil Barthwal confirmed these concerns on Tuesday, stating that "Rising U.S. costs may prompt exporters from countries like China, Vietnam, and Indonesia, all facing U.S. trade deficits to divert goods to India, potentially triggering an import surge and Products at risk of being dumped in India."

According to the Crisil report, Chinese exporters may increasingly diversify their export destinations, with India being a primary target, as a strategy to avoid U.S. tariffs.

This redirection of trade flows could lead to a substantial surge in imports into the Indian market.

Such an increase in imports would likely widen India's trade deficit, creating broader implications for the Indian economy.

The report specifically identifies electronics, machinery, and textiles as sectors particularly vulnerable to significant dumping activities.

Despite these concerns, the report concludes on a cautiously optimistic note, stating that "the Indian government may impose anti-dumping duties to safeguard Indian exporters and mitigate any potential damage" should the situation warrant such protective measures.

(KNN Bureau)

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