MSME manufacturers need better protection against dumping: C-DEP Report
New Delhi, June 18
India's MSME manufacturing base needs a predictable and responsive trade remedy environment as dumping risks capacity utilisation and impacts a fair competitve environment in the country, as per a research report by Center for Domestic Economic Policy Research.
MSMEs are particularly vulnerable to dumping from countries like China especially in an environment where trade remedies are unavailable. Effective remedial action can help bolster India's MSME ecosystem and help sustain manufacturing that is critical for generating employment and also boost exports.
As per the report, MSMEs are more vulnerable to dumped imports than larger companies, which are generally better equipped to absorb price fluctuations through diversified operations and stronger financial resources. In contrast, MSMEs are more exposed to low-priced imports that undercut domestic production costs.
The report flagged rising trade-circumvention practices, including product modifications, trans-shipment through third countries and other methods used to bypass anti-dumping duties. It noted documented cases in products such as PET resin and warned that "such practices risk diluting the intended impact of trade remedies by rerouting dumped goods into domestic markets in altered forms or through indirect channels."
"Implementation of DGTR recommended Anti-dumping duties are essential for ensuring fair competition and a level playing field for the domestic industry in general and for the MSMEs. For MSMEs producers, it trade remedies impacts survival, employment and investment confidence. When dumping is established, implementation of recommended duties is critical to prevent large scale MSME shutdown," said C-DEP Research.
The research further noted that "injury to MSMEs has broader implications for employment generation, cluster viability, supplier diversity and domestic industrial resilience."
According to the research report, "India's MSME manufacturing base requires a predictable and responsive trade remedy environment. Implementation of DGTR-recommended anti-dumping duties, where dumping and injury have been established, will help restore fair competition, safeguard domestic investments and support India's broader objective of building a resilient manufacturing economy under Atmanirbhar Bharat."
— ANI
Reader Comments
Finally someone is talking about trade circumvention! I work in the plastics industry and we've seen PET resin being shipped through Vietnam and Bangladesh to avoid duties. The government needs to tighten rules on country of origin certification. But let's also be honest - some MSMEs need to improve their own quality and efficiency too. It's not ALL about dumping.
Dumping is a real issue, but I worry about protectionism harming consumers too. Cheaper imports have helped many families afford basic goods. We need balanced policies that protect MSMEs without making everything expensive for the common man. Also, MSMEs should explore export markets in Africa and Southeast Asia rather than just competing domestically. Just my two paise!
Good report but we've heard similar things for years. The problem is implementation. DGTR investigates, finds dumping, recommends duties - and then what? Delays, appeals, and by the time action is taken, the damage is done. Need automatic provisional duties once dumping is prima facie established. Our MSMEs employ crores of people - we can't treat this like some academic exercise.
As someone who runs a small textile unit in Tirupur, this hits close to home. We've seen orders drop because cheap synthetic fabrics from China are flooding the market. But I also think MSMEs need to diversify. Relying only on anti-dumping is like putting a band-aid on a wound. We need better technology access, easier credit, and skill development too. Multiple approaches needed!
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