GS 3: Economy | Mobilization of resources

Why in News?

• India has levied anti-dumping duty worth up to USD 1,559 per tonne on imports of a certain type of sheet used in solar cell making from China, Malaysia, Saudi Arabia and Thailand for five years to safeguard domestic players against cheap shipments.
• The anti-dumping duty has been imposed after considering the recommendations of the commerce ministry’s investigation arm Directorate General of Trade Remedies (DGTR).

Highlights:

• The duty, which is in the range of USD 537 to USD 1,559 per tonne, will be imposed on the imports of “Ethylene Vinyl Acetate sheet for solar module” from the select four nations.
• It shall be effective for a period of five years unless revoked, superseded or amended earlier.
• The Directorate General of Trade Remedies had initiated the probe in April 2018 following a complaint by a domestic company.
• In its probe, the directorate had concluded that imposition of the duty is required to offset dumping and injury caused by dumped imports from China, Malaysia, Saudi Arabia and Thailand.
• The product is a polymer based component used in the manufacturing of solar PV (Photo Voltaic) modules.
• The imports of the sheets from the four nations increased to 6,367 tonnes during the period of investigation (October 2016 to September 2017) from 4,674 tonnes in 2016-17. The imports stood at USD 1,025 tonnes in 2015-16 and USD 594 tonnes in 2014-15.

Why is anti-dumping duty imposed?

• Nations across the world carry out anti-dumping probes to determine whether their domestic industries have been hurt because of a surge in cheap imports.
• Following which, anti-dumping duties are imposed as a counter measure to safeguard their domestic market under the multilateral regime of WTO.
• Hence, the anti-dumping duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers with regard to foreign producers and exporters.

Background:

• The imports of components used in solar industry have increased as India launched an ambitious national solar policy named Jawaharlal Nehru National Solar Mission in January 2010.
• Under this, the country has a target of generating 20,000 megawatts (MW) of solar power by 2022.
• Several countries are interested in supplying solar equipment to tap into the growing sector in India.