India sets five-year anti-dumping duty on Vietnamese steel
The new duty is crucial since Indian steel makers have long voiced worries about cheap Vietnamese imports hurting local industry.
New Delhi: India has announced a significant trade decision by imposing an anti-dumping duty of USD 121.55 per tonne on imports of hot rolled flat steel products from Vietnam, a move that will remain in force for five years. The government says the step is necessary to shield Indian manufacturers from unfairly priced imports that have been undercutting the domestic market.
This decision follows a detailed investigation by the Directorate General of Trade Remedies (DGTR), which examined allegations from Indian steelmakers who claimed that Vietnamese exporters were dumping these products at prices far below their normal value. After months of data analysis, industry consultations, and scrutiny of trade patterns, DGTR concluded that the dumping was real and was causing material injury to Indian producers. Acting on this recommendation, the finance ministry issued a notification on Thursday enforcing the new duty.
For India’s steel industry, which has been voicing concerns for quite some time, the imposition of the duty is more than just a regulatory move—it is a reassurance. Several domestic manufacturers had expressed that a surge in cheaper Vietnamese imports was hurting their margins and weakening their ability to compete. Many argued that without government intervention, it would become increasingly difficult to sustain production levels, make future investments, or maintain stable pricing in the local market.
However, the decision has not been welcomed by everyone. Sections of the user industry—particularly sectors that rely heavily on steel as a key raw material—believe the anti-dumping duty could increase input costs. These industries often prefer cheaper imported steel to keep their own manufacturing expenses under control. They argue that such duties create an additional burden and limit their options, ultimately affecting product prices for Indian consumers. This tug-of-war between producers and users is not new in global trade but highlights the balancing act governments must perform when protecting domestic industries while ensuring competitiveness.
Anti-dumping duties like this one are allowed under the global trade framework monitored by the World Trade Organization (WTO). The WTO provides guidelines to ensure that countries act fairly, transparently, and only after thorough investigations. Since both India and Vietnam are WTO members, the process followed must align with international rules. By imposing this duty, India says it is simply exercising its right to prevent market distortions and maintain fair competition.
The trade dynamics between India and Vietnam are already considerable. Both countries are members of the ASEAN–India Free Trade Agreement, which has been in place since 2010, allowing reduced tariffs on various goods. Despite this partnership, the trade balance continues to tilt heavily in Vietnam’s favor. In 2023–24, bilateral trade stood at USD 14.81 billion, slightly higher than the previous year’s USD 14.7 billion. India’s exports to Vietnam amounted to USD 5.47 billion, while imports reached USD 9.34 billion, resulting in a trade deficit of USD 3.87 billion for India.
Against this backdrop, India’s move is also seen as an attempt to manage the widening trade gap. While New Delhi and Hanoi continue to strengthen their strategic and economic ties, India appears determined to ensure that its domestic industries are not weakened in the process.
With the new duty now in place, all eyes will be on how it reshapes market dynamics, impacts pricing, and influences future trade relations between the two countries.