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Mint
16 hours ago
- Business
- Mint
India slaps five-year anti-dumping duty on Chinese aluminium foil, chemicals
New Delhi: India has imposed five-year anti-dumping duties on imports of Chinese aluminium foil and acetonitrile from China, Russia, and Taiwan, according to a government notification, after trade investigations found that under-priced shipments were harming domestic manufacturers. The measures, replacing earlier provisional tariffs, are part of India's broader effort to curb cheap imports and protect local producers. 'This is a strategic sector linked to packaging, defence, and energy," said Abhash Kumar, trade expert and assistant professor of economics at Delhi University. 'The measure sends a strong signal about India's intent to safeguard its value-added aluminium manufacturing base." Read this | India's quality crusade: Stricter standards aim to boost manufacturing, curb substandard imports The Directorate General of Trade Remedies (DGTR), which concluded the investigation in March, found that imports of aluminium foil from China were being priced significantly below normal value, causing substantial damage to Indian producers. Domestic companies including Hindalco and Jindal Aluminium had petitioned for the duties, citing rising imports over the past two years that were eroding margins and impacting capacity utilisation. Five-year tariffs on aluminium, chemicals The definitive anti-dumping duty on aluminium foil now ranges from $479 to $721 per metric tonne, effective from 17 March 2025. This replaces provisional duties imposed in March that ranged from $619 to $873 per tonne. While the duty bands are lower, the shift from a six-month provisional tariff to a five-year definitive measure signals India's decision to lock in long-term trade protection for domestic manufacturers. A general duty of $721 per tonne applies to producers not specifically listed, according to the government notification issued late Thursday. During the period of investigation from April 2022 to September 2023, the combined capacity and production of the applicant domestic producers stood at 132,140 metric tonnes and 69,572 metric tonnes, respectively—representing about 45% of India's total aluminium foil capacity and 54% of total production. National capacity during that period was 289,735 metric tonnes, with total production at 126,495 metric tonnes. Despite a 106% rise in domestic consumption, imports from China surged by 178%, while Indian producers' sales rose only 29%, indicating intense import-led pricing pressure. According to World Bank trade data, India imported 140,234 tonnes of aluminium foil from China during the first eleven months of 2024, up from 121,272 tonnes during the same period a year earlier. Producers impacted include Chinese firms Henan Mingtai Technology, Sunho New Materials, and Jiangsu Dingsheng. The duties cover aluminium foil of up to 80 microns in thickness, imported under multiple tariff lines. Certain specialised aluminium foil products used in capacitors, cooling systems, aluminium panels, beer bottle necks, and adhesive tapes are excluded. Separately, India also imposed five-year anti-dumping duties on acetonitrile imports after finding that exporters from China, Russia, and Taiwan were selling below fair value. Acetonitrile is widely used as a solvent in pharmaceuticals, agrochemicals, and research laboratories. The duties on acetonitrile, notified on Thursday, range from $202 to $481 per metric tonne, depending on the exporter. The highest duty of $481 per tonne applies to Chinese suppliers not individually named, while lower rates apply to Nantong Liyang Chemical, Shandong Kunda Biotechnology, and Weifang Zhonghui Chemical. Similar duty levels were set for exporters from Russia and Taiwan. Read this | Centre eyes tighter customs rules to curb smuggling by 'import carriers' India's total annual demand for acetonitrile is estimated at 25,000 to 27,000 tonnes, according to IMARC Group, a research firm. Of that, domestic production accounts for around 15,000 to 18,000 tonnes, with imports covering 12,000 to 15,000 tonnes. India's domestic acetonitrile production is currently limited to a few players, including Jubilant Ingrevia and Rashtriya Chemicals and Fertilizers Ltd (RCF). Industry participants had complained that the influx of cheap imports was squeezing margins and lowering capacity utilisation. Part of broader trade push Both duties will remain in place for five years unless modified or revoked following review. They are payable in Indian rupees and calculated using the Reserve Bank of India's exchange rates on the date of entry. The actions reflect a broader trend in India's trade policy, which has seen a steady rise in anti-dumping cases, particularly involving Chinese exports across sectors including steel, chemicals, consumer goods, and electronics. In 2024, the DGTR launched 43 anti-dumping investigations and reviews, of which 34—or nearly 79%—involved imports from China. In March 2025 alone, DGTR issued final findings in 13 cases, 12 of which targeted Chinese products. India is also moving to tighten controls on imports of substandard paper products, particularly from China, with the Department for Promotion of Industry and Internal Trade (DPIIT) in the process of introducing a new Quality Control Order, Mint reported earlier. Read this | India to crack down on substandard Chinese paper imports amid rare-earths row The decision also comes shortly after the US raised its tariffs on aluminium and steel imports to 50% from 25%, applicable to all trading partners including India and China. 'The higher duty imposed by the US may be a reason to put a check on excessive imports of aluminium from China," said Arun Kumar Garodia, former chairman of the Engineering Export Promotion Council (EEPC). Also read | US-China trade war blows hot and cold for India The aluminium duty decision comes amid broader concerns about China's control over critical raw materials. Beijing recently restricted exports of rare earth magnets to India, further complicating trade relations between the two countries.
Mint
14-06-2025
- Business
- Mint
India in anti-dumping crosshairs: US, Pakistan target Indian exports at WTO
New Delhi: The US, Brazil and Pakistan have initiated anti-dumping measures against India, which has been fighting its own battle against low-priced products flooding domestic markets. Trade experts suggest some of these measures may be strategic, signalling a growing wave of trade defense actions against India and aimed at influencing New Delhi's trade negotiations with key partners. Pakistan's anti-dumping charges against India are particularly baffling, as the two duelling neighbours have banned any trade between them. Yet, Pakistan has initiated an anti-dumping investigation against India over exports of sulfonic acid, which is used in manufacturing detergents, dyes, and catalysts, according to a World Trade Organization report released late on Thursday (12 June). The WTO document details preliminary and final anti-dumping measures undertaken by 11 members of the trade body, including major economies such as the US, Brazil, Pakistan, Indonesia, and the UK, against various countries. The report is based on notices submitted in May under Article 16.4 of the WTO Anti-Dumping Agreement. 'Such measures reflect the growing wave of trade protectionism aimed at shielding domestic industries," said Abhash Kumar, a trade economist and assistant professor of economics at Delhi University, referring to the anti-dumping charges against India. 'The repeated targeting of Indian products highlights the need for India to adopt a more proactive trade defense strategy." The commerce ministry didn't immediately reply to Mint's queries on the development. Amid India-US trade talks India and the US concluded a fifth round of face-to-face talks on 10 June on streamlining tariffs and reducing non-tariff barriers towards finalising a landmark bilateral trade agreement. But New Delhi also approached the WTO over the US's steep tariffs on Indian steel, aluminium and auto component exports. Washington has rejected India's notices at the WTO against the US's 25% tariff on steel and aluminium—both of which have since been increased to 50%—as well as the 25% duty on auto components. However, as per a Mint report on 10 June, the US has agreed to discuss both issues with India outside the WTO framework. Amidst this, the US has initiated a broad set of investigations into Indian exports across critical sectors, according to the WTO report. These include ceramic tiles, cold-drawn mechanical tubing of carbon and alloy steel, and corrosion-resistant steel products, which are central to India's manufacturing and infrastructure export strategy. Also read | US puts hard terms on table, presents a take-it-or-leave-it offer India's total exports of ceramic products to the US stood at $403.87 million in 2023-24, but declined to $361.44 million in FY25, according to commerce ministry data. In the chemical sector, Indian-origin epoxy resins, glycine, melamine, and granular polytetrafluoroethylene (PTFE) resins are facing trade restrictions. The US has also listed Indian exports of 2,4-D herbicide and raw honey under anti-dumping scrutiny, pointing to growing tensions over India's role in global agricultural commodity markets. Exports of Indian-origin resins to the US increased from $358.07 million in FY24 to $448.73 million in FY25, while India's honey exports to the US jumped from $176.29 million to $204.58 million. Pakistan's puzzling charges India's challenges are not limited to Washington. Brazil has named India in an investigation into pre-painted steel, raising concerns over competitive steel pricing from South Asia. Pakistan, meanwhile, has initiated an anti-dumping investigation into sulphonic acid imports from six countries, including India. This development is particularly puzzling given that India banned exports to Pakistan after the Pulwama attack in 2019, and Pakistan banned all trade with India in August 2019 following India's decision to revoke Article 370 in Jammu and Kashmir. With direct imports from India into Pakistan prohibited for nearly six years, analysts suggest that Islamabad's investigation may be aimed at Indian-origin sulphonic acid entering Pakistan through third countries such as the UAE, Singapore, or Malaysia. Also read | After US's 50% tariff blow, India now faces EU heat on steel quotas 'These shipments may have been relabelled to hide their Indian origin, raising concerns within Pakistan's domestic industry. It's also possible that the investigation is based on the injury caused by imports that took place before the trade ban came into effect," said Ajay Srivastava, co-founder of the Global Trade Research Initiative, a think tank. 'Alternatively, the move could be strategic, aimed at formally challenging India's pricing practices and laying the groundwork for future trade negotiations," he added. India's anti-dumping woes India's trade investigation body, the Directorate General of Trade Remedies (DGTR), has initiated 11 anti-dumping investigations and issued final findings in 13 cases—mostly targeting Chinese products—in FY25. In the past, India had launched an anti‑dumping probe on high‑speed steel imports from Brazil in 2018. In January this year, the DGTR launched anti-dumping investigations into imports of nylon filament yarn and sulphenamides accelerators originating from the US. 'As anti-dumping actions rise globally, including from key partners like the US, India will use both its legal rights at the WTO and the ongoing BTA negotiations to defend its exporters, push for fairer trade rules, and address protectionist barriers," a government official said. However, India did not file any new cases during the May reporting period.
Mint
07-05-2025
- Business
- Mint
India-UK FTA: Can exporters seize the opportunity amid tough competition?
NEW DELHI : With US tariffs looming and global trade uncertainty rising, India's exporters are turning to a newly signed free trade agreement (FTA) with the UK as a crucial lifeline—one that eliminates tariffs on nearly 100% of Indian exports and opens a vital market for textiles, gems, and engineering goods. The deal comes just as higher tariffs from the US threaten to disrupt key export sectors, prompting Indian businesses to recalibrate their strategies. The UK's zero-duty access positions it as a strategic alternative, particularly as Indian exporters grapple with the US decision to impose an additional 26% duty on Indian products—a measure temporarily paused until July 8. The bilateral trade agreement (BTA) with the US is not expected until the fall of 2025 (September to November) 'The UK has now become a strategic alternative, offering zero-duty access for labour-intensive exports such as apparel, garments, handmade jewellery, and engineering goods," said Dattesh Parulekar, assistant professor of International Relations at Goa University. Read this | Foreign car firms eye trade deals for EV tariff reduction However, while the UK's zero-duty access is an enticing offer, experts warn that the real challenge for Indian exporters will be adapting to the competitive dynamics of the UK market. 'The trade deal definitely holds promise, but the real gains will depend on how quickly Indian exporters can adapt to the UK's competitive market," said Abhash Kumar, trade economist and assistant professor of economics at Delhi University. 'Lower tariffs are just one part of the equation—our businesses also need to meet quality norms, delivery expectations, and stay compliant with global standards." While the FTA, finalized after 14 rounds of negotiations over three years, is expected to boost sectors like engineering and textiles, India's MSMEs could find themselves on the losing end. 'India's decision to open up government procurement to British firms, while UK procurement remains largely closed, creates a deeply unequal playing field," said Ajay Srivastava, co-founder of the Global Trade Research Initiative. 'UK firms will gain preferential access to India's vast public contracts, but Indian companies are unlikely to win much business in return." According to Srivastava, less than 0.5% of EU procurement goes to non-EU suppliers, and even in the UK, foreign firms secure no more than £20 billion in contracts annually. 'Indian firms, especially MSMEs, are not equipped to navigate that market," he said. Read this | India, EU discuss textile duty relief in exchange for whisky concessions under FTA 'Beyond economics, this move weakens India's strategic policy space to build domestic capacity in critical sectors like defence, clean energy, and health. It also threatens the survival of local MSMEs that depend on public contracts for growth and stability," he added. Despite concerns, some sectors are poised to gain. Engineering exports to the UK are projected to nearly double over the next five years, reaching around $7.55 billion by 2029-30, according to Pankaj Chadha, chairman of the Engineering Export Promotion Council (EEPC). The UK is currently India's sixth-largest engineering export destination, with exports rising 11.7% to $4.01 billion in FY25. Exports of chemicals and allied products increased from $1.29 billion in FY22 to $2.68 billion in FY25, while engineering goods exports—including auto components, industrial machinery, and transport equipment—rose from $3.04 billion to $4.01 billion over the same period. In the textile sector, the FTA offers a chance to reclaim lost ground. After declining to $1.97 billion in FY24, textile exports to the UK rebounded to $2.12 billion in FY25, driven by strong demand for mid- to high-end garments. The UK imports about $19 billion worth of apparel annually, with India accounting for just 5-5.5% of that market, well behind China and Bangladesh. Sudhir Sekhri, chairman of the Apparel Export Promotion Council (AEPC), noted that UK buyers, particularly those sourcing mid-to high-end garments, are already responding positively to the pricing advantage. In the gems and jewellery sector, the tariff elimination could double exports within a year, according to Vipul Shah, former chairman of the Gems and Jewellery Export Promotion Council. Exports to the UK, which reached $941 million in FY24, are poised to surge as duties of up to 4% are slashed to zero. India's agricultural exporters are also eyeing substantial gains. Under the FTA, several agricultural and processed food products will see duties reduced to zero. For animal products, which are currently subject to duties of up to 20%, 99.3% of tariff lines will be exempt from duties. Similarly, vegetable and oil products, which also face duties of up to 20%, will benefit from 99.8% of tariff lines being reduced to zero duty. Processed food products, which can face duties as high as 70%, will see 99.7% of tariff lines brought down to zero duty. This reduction is expected to significantly enhance India's export competitiveness in these sectors. The UK market's appetite for Indian staples—like rice, spices, seafood, and processed foods—has already driven agricultural exports from $571.16 million in FY22 to $784.57 million in FY25. Read this | New template for trade deals: Govt to focus on tariffs, non-tariff barriers to clinch early agreements Binod Anand, a member of the government's MSP Committee of Agriculture, emphasized the FTA's potential to boost farmer incomes, particularly if cooperatives are mobilized to capitalize on the duty-free access. The agreement also has implications for the logistics sector. 'For logistics providers, the FTA offers more than tariff relief—it removes bottlenecks, improving the speed and efficiency of high-value cargo shipments, including electronics and fuels. Looking ahead, it lays the groundwork for collaboration with UK logistics innovators to integrate advanced technologies like AI-driven supply chains and automation into multimodal operations," said Jitendra Srivastava, CEO of Triton Maritime & Logistics. The trade agreement is expected to push bilateral trade to $120 billion by 2030, marking a significant step in India's post-Brexit engagement with the UK. But with UK firms set to benefit more than their Indian counterparts in public contracts, the FTA's true value for India's exporters remains to be seen. Also read | India could learn much from the complaints of its trade partners UK Prime Minister Keir Starmer, meanwhile, has dismissed criticisms of the deal, describing concerns over tax exemptions as "incoherent nonsense" and insisting that the deal is in Britain's economic interest. 'Trade deals with 50 other countries have similar clauses," Starmer argued, referring to concerns over tax exemptions.
Mint
02-05-2025
- Business
- Mint
Services boost India's exports to an all-time high of $824.9 billion in FY25
India's exports rose 6.01% year-on-year to an all-time high of $824.9 billion in 2024-25, propelled by a 13.6% on-year rise in services exports to a record $387.5 billion, showed the Reserve Bank of India's (RBI) final services trade data released on Friday. March alone saw services exports surge 18.6% on-year to $35.6 billion, reflecting continued global demand for India's IT, business, financial, and travel-related services, the RBI said. The merchandise segment also contributed to the overall rise, with non-petroleum goods exports reaching a new peak of $374.1 billion in 2024-25, up 6% from $352.9 billion a year ago. This is the highest annual figure for India's non-petroleum merchandise shipments, offering some reassurance when traditional goods exports have been under pressure from tightening global demand and geopolitical disruptions. This sharp rise in exports, which stood at $778.1 billion in 2023-24, comes when India is actively working to expand its trade footprint via bilateral and multilateral agreements, and is positioning itself as a resilient, service-driven exports economy amid shifting global supply chains. India is attempting to consolidate its global trade presence through ongoing free trade agreement negotiations, particularly with the European Union and the UK, and amid efforts to mitigate the impact of retaliatory tariffs introduced by the US. Experts see the performance as an indication of India's growing competitiveness in high-value services and diversified goods sectors. 'The rise in exports reflects the better performance of the manufacturing sector, which is completing a strong turnaround driven by resilient global demand, improved logistics, and government incentives under schemes like performance-linked incentives,' said Abhash Kumar, an economist. While petroleum and other commodity-linked exports remained relatively subdued due to volatile global prices, the continued expansion in digitally driven services and value-added manufacturing suggests a structural shift in India's exports composition. The RBI numbers are likely to boost policymakers' efforts to promote trade-led growth as part of India's broader 2047 development vision. Meanwhile, India's trade surplus with the US jumped 16.6% in 2024-25, ballooning to $41.18 billion from $35.32 billion a year ago, even as US President Donald Trump prepared to hike US tariffs in protest. According to 15 April commerce ministry data, Indian goods exports to the US rose by 11.6%, from $77.52 billion in 2023-24 to $86.51 billion in 2024-25. Imports from the US also rose, but just 7.42%, from $42.20 billion to $45.33 billion. Globally, India's trade deficit widened sharply to $21.54 billion in March, rising from a three-year low of $14.05 billion in February. Merchandise exports for the fiscal year stood at $437.42 billion, marginally higher than the $437.07 billion recorded a year ago, while imports stood at $720.24 billion, up from $678.21 billion in 2023-24, showed the commerce ministry data. March's goods exports stood at $41.97 billion and imports at $63.51 billion, compared with $36.91 billion of exports and $50.96 billion of imports in February. First Published: 2 May 2025, 06:15 PM IST
