India-China Relation / Is China's 'garbage' about to return? India is preparing to take major action

India-China Relations: Ever since there have been signs of cordial relations between India and China, a new threat has emerged in India—Chinese dumping. Following the Galwan conflict, the Indian government took several steps to curb this threat, but now that relations between the two countries are moving toward normalization, India has once again become vigilant. The Commerce Ministry's investigative arm, the Directorate General of Trade Remedies (DGTR), has recommended the government to remain vigilant and take strict action. It is believed that the government may soon take a major action against China to protect the Indian market from the effects of Chinese dumping. Let's find out what steps the government is planning to take in this direction.

DGTR's Recommendation to the Government

The Commerce Ministry's investigative arm, the DGTR, has recommended imposing anti-dumping duties for five years on cold-rolled non-oriented electrical steel imported from China. The primary objective of this move is to protect Indian domestic companies from the harm caused by cheap imports. The DGTR, in its investigation, found that this product was being exported to India at a price below its normal value, leading to dumping.

The DGTR has recommended imposing a duty of $223.82 per tonne on some Chinese companies and $414.92 per tonne on others. In its notification, the DGTR clarified that this anti-dumping duty has been recommended for a period of five years.

Why are anti-dumping duties necessary?

The purpose of anti-dumping duties is to promote fair trade and protect domestic producers from losses caused by cheap foreign imports. The DGTR conducts such investigations to ensure that local industries are not harmed by cheap imports. However, the DGTR only makes recommendations, with the Ministry of Finance taking the final decision.

India has previously imposed anti-dumping duties on various products to prevent cheap imports from several countries, including China. These duties not only ensure fair trade but also provide a level playing field for domestic and foreign producers.

India-China Trade and Trade Deficit

The importance of the trade relationship between India and China can be gauged from the bilateral trade figures between the two countries. Trade between the two countries stood at $127.71 billion in FY2025. Of this, India recorded a trade deficit of $99.2 billion with China. During this period, India imported goods worth $113.5 billion from China, primarily electronics, industrial machinery, and other products.