India incurred an annual economic loss of Rs 11,938 crore to domestic industry due to the absence of anti-dumping duties on 56 products recommended by the Directorate General of Trade Remedies (DGTR), according to a report released on Monday by C-DEP Research and the Centre for WTO Studies under the Ministry of Commerce.
According to estimates by C-DEP, implementation of the recommended duties could have generated annual foreign exchange savings of nearly Rs 28,540 crore (around $3 billion) by enabling domestic manufacturers to cater to local demand instead of imports.
The report warned that if imports remain unchecked, they could adversely affect India’s growth trajectory and employment generation.
“Under this scenario, cumulative economic loss rises from about Rs 1.54 lakh crore in the current case set to nearly Rs 2.68-2.70 lakh crore by 2030, with jobs at risk increasing materially as well,” the report stated.
The study cautioned that failure to impose anti-dumping duties could weaken India’s manufacturing base and increase dependence on imports in key sectors by the end of the decade.
It argued that India’s manufacturing capacity would be adversely impacted by the uncompetitive price advantage enjoyed by unfairly priced imports, widening the demand-supply gap across several sectors.
“If unfairly priced imports keep suppressing domestic sales and investment, India may enter 2030 with higher demand but weaker domestic capacity,” the report said, adding that the trend could stifle investments and create avoidable import dependence in sectors where India already has sufficient manufacturing capability.
Rejecting the argument that anti-dumping measures could trigger inflation, the study asserted that the impact on prices would be “immeasurably low”. However, it noted that the absence of such measures disproportionately affects small and medium enterprises.
The report highlighted that MSMEs manufacturing products such as sublimation-transfer paper, phone back covers and nylon filament yarn have reportedly faced shutdowns amid rising import competition.
According to the study, continued non-implementation of DGTR recommendations risks “domestic capacity destruction” and threatens supply-chain resilience, particularly in strategically important manufacturing sectors.