"India eases FDI rules and anti-dumping stance to balance trade with major economies"
Anti-dumping duty
additional tariff on imports sold below normal value in the exporting country, permitted under WTO rules
DGTR (Directorate General of Trade Remedies)
Ministry of Commerce body that investigates dumping petitions and recommends duties
India's economic relationship with China has long been defined by structural asymmetry: a persistent and widening trade deficit on one side, and deep strategic mistrust on the other. The Foreign Direct Investment (FDI) Policy has historically been the primary instrument through which India managed Chinese capital inflows. A decisive tightening came when the government amended the FDI Policy to require prior government approval for any investment originating from a country sharing a land border with India — covering China, Pakistan, Bangladesh, Nepal, Bhutan, and Myanmar. This was framed as a safeguard against 'opportunistic' acquisitions of Indian companies during the economic vulnerabilities of the pandemic period.
On the trade side, India's principal defensive tool has been anti-dumping duties, governed by the Directorate General of Trade Remedies (DGTR) under the Ministry of Commerce and Industry. Anti-dumping duties are a permissible trade remedy under Article VI of the General Agreement on Tariffs and Trade (GATT) and the WTO Anti-Dumping Agreement, allowing member countries to impose additional tariffs on imports sold below their normal value in the exporting country. The DGTR conducts quasi-judicial investigations and forwards recommendations to the Ministry of Finance, which holds the final statutory authority to accept or reject them. For nearly three decades after liberalisation, this authority was exercised with remarkable restraint — the Finance Ministry rejected fewer than 1% of DGTR recommendations.
The anti-dumping investigation process is evidence-intensive and multi-stakeholder. Domestic producers file a petition with the DGTR, which examines export prices, normal values in the country of origin, the causal link between dumped imports and injury to domestic industry, and submissions from importers, exporters, and user industries. The resulting recommendation — typically a 100–200 page report — is forwarded to the Ministry of Finance. The Ministry's discretion to reject a recommendation is legally recognised but was historically used sparingly.
Data compiled by the Centre for Digital Economy Policy (C-DEP) reveals a dramatic shift in this pattern. Between 1991 and 2020, the Finance Ministry rejected just 5 out of 1,052 DGTR recommendations — a rejection rate of 0.5%. From 2020 onwards, rejection rates surged to 50–62% in three consecutive years, before moderating to around 21% and then 6%, and rising again to over 41% in the current fiscal year. …
Consider the following:
1.Foreign currency convertible bonds
2.Foreign institutional investment with certain conditions
3.Global depository receipts
4.Non-resident external deposits
Which of the above can be included in Foreign Direct Investments?
Which of the following has/have occurred in India after its liberalization of economic policies in 1991?
1.Share of agriculture in GDP increased enormously.
2.Share of India's exports in world trade increased.
3.FDI inflows increased.
4.India's foreign exchange reserves increased enormously.
Select the correct answer using the codes given below:
With reference to India's anti-dumping duty mechanism, consider the following statements:
1.The Directorate General of Trade Remedies (DGTR) has the final authority to impose anti-dumping duties.
2.Anti-dumping duties are permissible under Article VI of the General Agreement on Tariffs and Trade (GATT).
3.The Ministry of Finance can reject a DGTR recommendation without imposing the recommended duty.
Which of the statements given above is/are correct?
Consider the following statements regarding India's FDI policy toward countries sharing a land border:
1.The 2020 amendment to the FDI Policy requires prior government approval for investments from all countries sharing a land border with India.
2.The 2026 Cabinet decision allows companies with up to 25% Chinese ownership to invest via the automatic route.
3.The automatic route means foreign investment does not require prior government approval, subject to sectoral caps.
Which of the statements given above is/are correct?
Assertion (A): India's rejection rate of DGTR anti-dumping duty recommendations rose sharply after 2020, with cases involving Chinese goods accounting for the majority of rejections.
Reason (R): Anti-dumping duties on intermediate inputs from China would increase production costs for Indian manufacturers participating in Production Linked Incentive (PLI) schemes and reduce their export competitiveness.
Which one of the following is correct in respect of the above?
With reference to the structural shift in India's imports from China, which of the following trends is correctly described?
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