Enforcing anti-dumping duties can save India Rs 28,540 cr annually, says report

The non-implementation of the recommended anti-dumping duties has resulted in an annual economic loss of Rs 11,938 crore to the domestic industry, whereas the imposition of these levies could generate an additional Rs 28,540 crore annually in forex by reducing imports, a report said on Tuesday. 

The Directorate General of Trade Remedies (DGTR), under the commerce ministry, conducts investigations into alleged dumping as a quasi-judicial authority, whereas the finance ministry takes the final call to impose these duties. 

“The non-implementation of anti-dumping duties on 56 DGTR-recommended products has resulted in an annual economic loss of Rs 11,938 crore to the domestic industry.

“Whereas, imposition of DGTR-recommended anti-dumping duty could additionally generate about Rs 28,540 crore ($3 billion) in annual foreign exchange savings by enabling domestic manufacturers to meet domestic demand instead of imports,” according to the C-DEP Research and Centre for WTO Studies report — Impact of Anti-Dumping Duties in India. 

A study of 33 products shows that economic loss from dumped imports in the current period is about Rs 1.54 lakh crore, and is projected to rise to Rs 2.70 lakh crore by 2030, with jobs loss increasing from around 24,000 at present to 38,000-42,000 by 2030, it said. 

The report has examined the effects of anti-dumping duties on downstream costs, inflation, MSMEs, domestic capacity, and investments.

Anti-dumping duties are WTO-compliant trade-remedy instruments that are levied globally by governments to safeguard their domestic manufacturers from predatory pricing by foreign exporters, who dump the imported products at prices that are lower than the prices in their home country.

Dumping occurs when a product is exported at a price lower than its normal value. For instance, if a chemical is sold domestically in China for $100 per metric tonne but exported to India at $70 per metric tonne, the dumping margin (difference between the normal value and export price) is $30 per metric tonne, or 30 per cent.

The report said that a notable shift has emerged in recent years in the implementation pattern of DGTR recommendations.

While India historically implemented nearly 99.5 per cent of the recommendations until 2020, rejection and non-implementation rates have risen sharply, it said, adding that the rejection ratio has increased to 81 per cent during November 2025-April 2026 from 16 per cent during April-November 2025.

The report also said that the antidumping duties in the US remain in force for an average of 16.26 years before they are withdrawn, while in India, it is only 6.97 years.

It said that non-implementation of anti-dumping duties reduces domestic capacity utilisation, thereby significantly dampening committed and new investments, leading to weakening of long-term industrial resilience and increasing the supply-demand gap in the economy.

“Non-implementation of anti-dumping duties risks suppressing domestic investment today, which could translate into a substantial structural demand-supply gap by 2030,” it said, adding that continued exposure to dumped imports may leave India reliant on foreign suppliers in sectors where domestic capacity exists.

Timely and WTO-compliant implementation of anti-dumping duties provides a direct mechanism to stabilise investment expectations, safeguard existing capacities, and ensure that the domestic industry can meet projected demand, supporting India’s trajectory toward a Viksit Bharat, it said.