Friday, May 22, 2009

DUMPING AND INDIA (30 MARKS, 250 WORDS)

Dumping is the process of selling goods to foreign market at very low prices.When production exceeds the demand and there is a chance of falling prices even lower than the stipulated levels, the country opts for selling the product to other countries at thrown away price.This saves losses of the producers but causes losses in the country where the products are being exported.
To restrict such dumping, countries tend to put quantitative restrictions upon dumping.But due to WTO norms such restrictions are prohibited.Thereby countries look for new devices to restrict dumping.
India has adopted various preventive measures allowed under WTO rules to restrict dumping.Giving subsidy to the farmers to reduce their production cost and improve quality of goods, imposing countervailing duties and additional charges are some of the measures taken by India in this regard.The Ministry of Commerce has established "Directorate of Anti Dumping" to tackle issues of dumping.
Main threats of dumping in India is in the spheres of agricultural produces and manufactures that are allotted to the small scale industries.However, measures taken against dumping renders the domestic economy more competitive due to technological upgradation,better value addition and cheaper products.

No comments:

Post a Comment