New Delhi, Aug 11: Rising number of anti-dumping cases in and against India has led manufacturers and trade representatives to form a common platform for addressing the issues of global competition and competitiveness. The Foundation for Promotion of Indian Industry has already enrolled 40 members, including several non-governmental organisations.

As a result of steep reduction in customs duty, removal of quantitative restrictions and opening of the economy, the industry was suddenly exposed to stiff competition from imports.

Given the high price sensitivity -- particularly in raw material and intermediaries -- price differences in domestic and imported goods are resulting in consumers shifting to imports, causing injury to the domestic industry.

While cheap imports into the country are in wider interests of consumers and the nation, difficulties arise when such imports result in unfair competition to the industry, sometimes even leading to closure of the companies. It is in this background that India has witnessed a large number of anti-dumping cases.

According to the World Trade Organisation (WTO), India was the leading user of anti-dumping action, initiating in all 79 cases followed by the United States with 35 cases.

Bureau Report