Government Enhances Oversight to Combat Cheap Imports Amid US Tariff Increases
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Synopsis
The Indian government has formed a taskforce to oversee potential predatory pricing and dumping of goods by foreign countries in light of increased US tariffs. The initiative aims to protect the local market and foster growth in the chemicals sector.
Key Takeaways
- The government has established a taskforce to monitor foreign dumping activities.
- Increased US tariffs may redirect exports to India.
- Emphasis on research and collaboration with academia for the chemicals sector.
- India aims to develop a REACH framework for chemicals.
- Investment opportunities in the chemicals sector are significant.
New Delhi, April 23 (NationPress) The government has established a taskforce to closely monitor efforts by foreign nations to dump products at unreasonably low prices to take advantage of the Indian market. This initiative comes in response to increased tariffs imposed by the Donald Trump administration, which complicates exports to the US, according to a senior official.
“A new global framework is emerging with tariffs and retaliatory measures being announced almost simultaneously. Exports directed towards the US may be redirected to us, necessitating vigilance against dumping and predatory pricing in the upcoming months. A task force under the Ministry of Commerce has been established to monitor this situation closely,” stated Deepak Mishra, Joint Secretary in the Department of Chemicals and Petrochemicals.
While addressing the 'India Speciality Chemicals Conclave' hosted by Assocham, Mishra remarked that India's chemicals sector “could benefit from these developments.”
“We are in the process of developing a Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) framework tailored for India. Once implemented, products can be certified in accordance with international environmental standards and quality controls,” he elaborated.
Mishra emphasized the importance of research and development for the speciality chemicals sector, which relies heavily on knowledge. “The industry must collaborate with academia to enhance research capabilities. We possess a robust ecosystem of research laboratories, both public and private, that are conducting commendable work,” he added.
Kapil Malhotra, Co-Chairman of the Assocham National Council on Chemicals and Petrochemicals noted, “As the impact of US tariffs settles, the chemicals sector has experienced an increase in activities, with inquiries flooding in from around the world.”
“We are also receiving inquiries for speciality chemicals from China, as they primarily focus on bulk chemicals. Upstream and downstream MSME players can significantly contribute to the growth of the chemicals sector. By aligning our efforts with downstream units, we can achieve a growth rate much faster than our current pace,” Malhotra stated.
During the conclave, CM Saikanth Varma, CEO of the Andhra Pradesh Economic Development Board, declared, “The growth potential in the chemicals sector is extraordinary. Specialty chemicals are a priority sector where the state aims to attract investments. The country’s largest petrochemical hub is planned for Mulapeta, where a deep-sea port is also under construction. The state boasts one of the most favorable Industrial Policies in the country today.”
“Investments exceeding Rs 1,000 crore and Rs 5,000 crore are eligible for customized incentives, allowing investors to present their requests, which the government will strive to accommodate. With three industrial corridors traversing the state, six operational airports, and access to ports and connecting ports, seamless connectivity by road, sea, and air is assured,” he added.
Sagar Kaushik, Chairman of the Assocham National Council on Chemicals and Petrochemicals, remarked that the global market for chemicals stands at approximately $6 trillion, with 60 percent of this traded internationally, presenting vast opportunities across various regions and sectors.
