A study has estimated India’s annual foreign exchange loss at nearly ₹28,540 crore due to delays in implementing pending anti-dumping duty recommendations. It said timely action could reduce import dependence, support MSMEs, protect domestic manufacturing and lower economic losses linked to low-priced imports across key industrial sectors.

Delay in Anti-Dumping Duties Costs India ₹28,540 Crore Annually, Study Says

The420.in Staff
4 Min Read

India is facing an estimated annual foreign exchange loss of nearly ₹28,540 crore due to delays in implementing pending anti-dumping duty recommendations, according to a recent study that warned of rising import dependence and growing pressure on domestic manufacturing sectors.

The study, titled Impact of Anti-Dumping Duties in India, claimed that enforcing pending measures could reduce import dependence, conserve foreign exchange and support domestic industries, including MSMEs. It said several products currently being imported at low prices can already be manufactured competitively within India, but cheaper foreign goods are placing domestic producers under pressure.

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Study Flags Pressure on Domestic Manufacturing

The findings were presented during a roundtable discussion attended by representatives from the chemicals, polymers, textiles and manufacturing sectors. According to the study, these industries account for a combined turnover of more than ₹5 lakh crore and are increasingly affected by low-cost imports entering the Indian market.

Under India’s trade remedy framework, the Directorate General of Trade Remedies investigates complaints of dumped imports that are allegedly sold in India below prices in the exporting country’s domestic market. If such imports are found to harm Indian industries, anti-dumping duties are recommended to restore fair competition.

The report stated that although most anti-dumping recommendations between 1991 and mid-2020 were implemented, the rate of rejection or pending action rose sharply between November 2025 and April 2026, reaching nearly 81 percent.

Unimplemented Measures Linked to Economic Losses

The study claimed that anti-dumping recommendations involving 56 products remain unimplemented despite findings of injury to domestic industries. It estimated that Indian manufacturers are suffering annual economic losses of around ₹11,938 crore due to the delay.

Another assessment covering 33 product categories warned that if corrective measures are not introduced, the total economic impact of dumped imports could rise to nearly ₹2.70 lakh crore by 2030.

The study also raised concerns over employment. It estimated that nearly 24,000 jobs are currently at risk due to continued pressure from low-priced imports. If the trend continues, the number of vulnerable jobs could rise to between 38,000 and 42,000 by 2030.

MSMEs and Import Dependence Under Focus

The report said sectors such as sublimation transfer paper, mobile phone back covers, DASDA and nylon filament yarn are facing operational stress or shutdown risks due to sustained low-cost imports. It added that sectors where anti-dumping duties were implemented reportedly saw improved MSME stability and fresh investment inflows.

Experts involved in the study argued that anti-dumping duties would have only a limited impact on inflation and consumer prices. According to the report, the median estimated consumer price impact in 56 cases where duties were not imposed was only 0.023 percent, while in more than 91 percent of cases, the impact remained below 0.10 percent.

The study also noted that India’s average duration of anti-dumping duties is 6.97 years, compared with the global average of 11.19 years. It further highlighted that India’s trade deficit with China increased to approximately $99.1 billion during 2024-25, reflecting rising import dependence and continued pressure on domestic industries.

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