India Braces for Potential Electronics Dumping Amid US-China Trade Tensions

With rising trade tensions between the US and China, India faces a potential influx of Chinese electronics as companies diversify markets. Crisil Ratings warns of dumping risks as China offers discounts to Indian buyers, posing threats to local industries. The Indian government is vigilant, forming a committee to monitor import surges.

Amid escalating trade tensions between the US and China, India is on high alert for the potential dumping of Chinese electronics. As Chinese companies seek new markets, they aim to capture Indian buyers with discounted products, compensating for decreased sales in the US, as noted by Crisil Ratings.

Crisil's report highlights vulnerability in key Chinese exports—electronics, machinery, and textiles—emphasizing potential impact on Indian industries. Commerce Secretary Sunil Barthwal acknowledged concerns, citing the possibility of goods being diverted to India from China, Vietnam, and Indonesia due to rising US costs, which could trigger an import surge.

In response, the Indian government has formed a committee led by the commerce secretary, incorporating officials from various departments, to monitor agricultural and merchandise influx, especially from third countries like Vietnam and Indonesia. The strategic move aims to mitigate risks associated with China's market diversification efforts necessary for countering US tariffs.

China's discount strategy targets India's expanding electronics and consumer goods market, potentially undermining domestic manufacturers' pricing power and profitability. The expected surge raises trade deficit concerns with broad economic implications, but India's government is prepared to impose anti-dumping duties to protect local industries, as outlined in Crisil's report.

(With inputs from agencies.)