With China and the US engaged in a full-fledged tariff war, the Commerce Ministry is setting up an import monitoring cell under the Directorate General of Trade Remedies to keep a close watch on imports to check surges, especially from the neigbouring country, sources said.
There is also a worry that China may now try to undercut other countries, including India, in important markets such as the EU by selling its stuff cheap.
“Much of China’s annual exports to the US of about $439 billion is likely to come to a halt with the 125 per cent tariffs imposed by the Donald Trump regime. It will be desperately looking to diversify its markets and sell more to the existing ones. India is vulnerable as it already imports substantially from Beijing and is also in its neighbourhood. The government therefore has to be more watchful towards dumping,” a source tracking the matter told businessline.
On Wednesday, US President Donald Trump postponed reciprocal tariffs announced on its trade partners, including India, by 90 days but it increased tariffs on China to 125 per cent. It would make it very difficult for China to keep exporting to the US unless it reaches a deal with the country.
Import monitoring cell
An import monitoring cell, which will keep track of imports and monitor surges of general goods periodically and of sensitive items on a daily basis, will be set up soon, the source said.
The DGTR, which already has a mechanism in place to investigate and propose actions against various trade violations by other countries, including dumping and subsidy actions, has been given additional responsibility of heading the import monitoring cell so that prompt action can be taken against surges, the source added.
“If required the BIS can be alerted to work together with the customs department to identify sub-standard imports,” a top official had said earlier outlining measures to stop China from increasing its exports to India.
Exporters are also worried about China increasing its exports not only to India but also to important markets such as the EU by undercutting prices and eating into the existing share of other countries.
“China will be aggressive in all markets including big ones such as the EU. It can adopt all possible ways to grab a greater share of the market through cost cutting, price cutting or dumping. India needs to watch out,” said Ajay Sahai from FIEO.
In FY 2024, India’s imports from China reached $101.74 billion, making China India’s top import source with bilateral trade totaling $118.4 billion. India’s trade deficit during the fiscal widened to $85 billion.