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The government has initiated a probe into alleged dumping of electrical insulators by Chinese companies following complaints by domestic players.
The Commerce Ministry's designated authority, the Directorate General of Anti-Dumping and Allied Duties (DGAD), has begun the investigations into the matter.
Five domestic industries including Bharat Heavy Electricals Ltd (BHEL) and Aditya Birla Nuvo have jointly filed the application for the probe.
In a notification, the DGAD has said that the petitioners have provided sufficient evidence that the normal value of the product in China are significantly higher than the net export price.
The evidences have prima facie indicated that the product is being dumped, it said.
"There is sufficient evidence of the injury being suffered by the domestic industry caused by dumped imports from subject country (China) to justify initiation of an anti-dumping investigation," it added.
The period of investigation is from April 2012 to March 2013. However, for the purpose of analysing injury, the data of previous three years of 2009-2010, 2010-2011 and 2011-12 would also be considered, it said.
After completion of the probe, the DGAD, if needed, would recommend the duty and the Finance Ministry would impose it.
The main function of electrical insulator is to insulate one conducting body from another at high voltage areas, or to insulate a body which can transmit electrical energy to the surrounding, at areas where such transmission of electrical energy has to be avoided.
It is used in circuit breakers, transformers, power transmission and distribution lines, including railways.
Countries initiate an anti-dumping probe to determine whether their domestic industries have been hurt because of surge in cheap imports of any product. As a counter-measure, they impose duties under the multilateral regime of the WTO.
The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters resorting to dumping.
India has initiated as many as 159 anti-dumping investigation cases since 1992 against China, with which it has a huge trade deficit of about $39 billion in 2012-13.
The bilateral trade between the countries stood at $65.78 billion in 2012-13.
Major items of Indian exports to China include raw cotton and yarn, iron ore, minerals, plastic, spices, machinery, petroleum. Import products include electric goods, machinery, chemicals, project goods, fertiliser, iron and steel, transport equipment and electric machinery.
