Industry located in North India is of the opinion that at a time when the recessionary conditions in the global economy are working their way to impact our economy and industry, the dumping of goods in the market by way of under priced imports has become a serious problem in select sectors. Indeed, around 32% of our respondents are severely impacted by dumping of goods by the foreign suppliers. These are the findings of a recent survey conducted by the PHD Chamber.

“What is also significantly hurting several companies are lower prices charged by competitor countries such as China, ASEAN and even some South Asian countries”, said Mr. Satish Bagrodia, President, PHD Chamber. “Industry is of the view that the low priced imports are not only robbing Indian industry of their markets in India, but also of their market abroad. The advantage of whatever demand was generated from stimulus package was going to Ukraine and Chinese companies. It is perceived that India being a large market has become a target for dumping in the prevailing situation of global slowdown. This is especially true of companies manufacturing items such as sanitary ware and ceramic tiles, chemicals, pharmaceutical formulations, steel, non-ferrous metals, food products, among others”, added Mr. Bagrodia.

Industry feels that neighboring countries like China, which have created global manufacturing capacity, have been increasingly treating India as an alternative market when faced with a demand recession in USA and Europe and are resorting to dumping of products at low prices. The dumping is threatening vulnerable sections of industry, particularly SMEs who have suffered financial losses and negative returns on capital employed. Industry supports the recent anti-dumping investigations initiated by the government to protect Indian industry from influx of cheap imports and seek government support against low priced imports.

However, a large majority, 68% do not see dumping as a major problem in their product lines and accept that the situation is more of subdued demand in a slowing economy

 

Anjula Singh Solanky
Dy. Secretary-Media Relations
PHD Chamber of Commerce and Industry