In a significant trade enforcement action, the Indian government has imposed definitive anti-dumping duties on two key products imported from China. The move targets cold-rolled non-oriented electrical steel and 1,1,1,2-Tetrafluoroethane, commonly known as R-134a refrigerant. The Directorate General of Trade Remedies (DGTR) recommended the duties after a detailed investigation found these goods were being exported to the Indian market at prices substantially below their normal value in China, causing material injury to domestic industries.
Details of the Anti-Dumping Investigation
The investigation, which concluded recently, established that the two Chinese products entered the Indian market at dumped prices. Cold-rolled non-oriented electrical steel is a critical material used in the manufacturing of motors, generators, and transformers. The R-134a refrigerant is widely used in automotive and stationary air conditioning systems. The probe determined that the influx of these cheap imports was harming local manufacturers who could not compete with the artificially low prices.
The official notification for the imposition of these duties was issued on 26 December 2025. The duties are not permanent but are levied for a period sufficient to counteract the damaging effects of dumping and to allow the domestic industry to recover. The amount of duty varies for each product and is linked to the calculated dumping margin—the difference between the normal value and the export price.
Rationale and Impact on Domestic Industry
The primary objective behind this regulatory step is to ensure a level playing field for Indian producers. Anti-dumping measures are a legitimate tool under World Trade Organization (WTO) rules that countries employ to protect their domestic sectors from unfair trade practices. When foreign companies export goods at prices lower than what they charge in their home market or below the cost of production, it constitutes dumping.
By imposing these duties, the government aims to:
- Shield domestic manufacturers from predatory pricing.
- Prevent potential job losses in the affected industrial sectors.
- Encourage fair competition based on quality and innovation rather than distorted prices.
The move is expected to provide immediate relief to Indian companies producing similar electrical steel and refrigerant gases. It will help stabilize market prices and allow domestic players to regain their market share.
Broader Trade Relations and Future Outlook
This action is part of a series of trade remedial measures India has undertaken concerning imports from various countries, including China. While both nations are major trade partners, India has consistently acted against imports that violate trade rules and threaten its economic interests. The decision underscores India's commitment to using a rules-based framework to address trade imbalances and protect its strategic manufacturing base.
Industry experts view this as a necessary corrective measure. The successful imposition of these duties relies on the detailed investigation conducted by the DGTR, which provided evidence of dumping and consequent injury. Going forward, the domestic industry is expected to leverage this protection to enhance its competitiveness and production capacity. The government's stance also signals to other trading partners that India will not hesitate to defend its market against unfair trade practices.
