India protecting industry from unfair trade practices of certain countries: Piyush Goyal

The Commerce and Industry Ministry has articulated a dual-track trade policy: actively protecting domestic industries from unfair trade practices such as dum...

What Happened

The Commerce and Industry Ministry has articulated a dual-track trade policy: actively protecting domestic industries from unfair trade practices such as dumping, subsidised imports, and predatory pricing — while simultaneously advancing the EFTA Trade and Economic Partnership Agreement (TEPA) and other FTA negotiations.
India has seen a significant increase in anti-dumping, countervailing, and safeguard investigations in 2024–2025, reflecting growing domestic industry demand for protection from import-competition from certain trading partners.
The government is working to safeguard domestic economic interests from "unfair trade practices of certain countries" — widely understood to include China and some Southeast Asian nations — through the WTO-compliant trade remedy framework.
On the investment front, ongoing discussions under the EFTA TEPA (in force October 1, 2025) focus on catalysing the USD 100 billion investment commitment from Switzerland, Norway, Iceland, and Liechtenstein — with a dedicated India-EFTA Investment Desk operationalised since February 2025.
The government is also promoting innovation and research through these investment discussions, seeking technology-intensive FDI rather than purely financial flows.

Static Topic Bridges

Trade Remedies — Anti-Dumping, Countervailing, and Safeguard Duties

Trade remedies are WTO-compliant mechanisms that allow countries to protect domestic industries from injurious import competition. India's three main instruments are:

Anti-Dumping Duty: Dumping occurs when a foreign exporter sells goods in India at a price below the normal value (cost of production + reasonable profit) in their home country, causing material injury to the competing Indian industry.

Legal basis: Sections 9A, 9AA, 9B, and 9C of the Customs Tariff Act, 1975; and the Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995.
These rules implement Article VI of GATT 1994 and the WTO Anti-Dumping Agreement (formally: Agreement on Implementation of Article VI of the GATT 1994).
The administering authority is the Directorate General of Trade Remedies (DGTR) under the Ministry of Commerce and Industry. DGTR was established as an integrated single-window agency in May 2018 (merging the earlier Directorate General of Anti-Dumping & Allied Duties).
Process: Domestic industry files petition → DGTR investigates (typically 12–15 months) → recommendation to Finance Ministry → Ministry of Finance imposes duty via notification.
Anti-dumping duty is valid for 5 years (extendable through sunset review).
India is one of the world's most frequent users of anti-dumping measures.

Countervailing Duty (CVD) / Anti-Subsidy Duty: CVD counters foreign government subsidies that give imported goods an unfair price advantage. - Legal basis: Section 9 of the Customs Tariff Act, 1975; implements WTO Agreement on Subsidies and Countervailing Measures (ASCM).

Safeguard Duty: Imposed when a sudden surge in imports (not necessarily unfair) causes serious injury to domestic industry. - Legal basis: Section 8B of the Customs Tariff Act, 1975; implements WTO Agreement on Safeguards. - Unlike anti-dumping and CVD, safeguard duties apply to all sources of imports (not country-specific) and are subject to WTO's "serious injury" — a higher threshold than "material injury" in anti-dumping.

Connection to this news: India's increased resort to trade remedy investigations (exponential increase noted in 2024–early 2025) against "unfair trade practices of certain countries" operates squarely within this DGTR-administered framework — legally compliant with WTO while providing domestic industry protection.

Directorate General of Trade Remedies (DGTR)

The DGTR is India's principal national authority for administering trade defence measures. It provides comprehensive, swift trade defence mechanisms through a single-window institutional structure.

Established: May 2018, as a reconstituted body merging the Directorate General of Anti-Dumping and Allied Duties (DGAD) with other trade remedy functions.
Functions under: Ministry of Commerce and Industry (Department of Commerce).
Key functions: conducting anti-dumping investigations; countervailing duty investigations; safeguard investigations; sunset reviews; circumvention investigations.
DGTR recommendations are advisory to the Ministry of Finance (which has final authority to impose the duty).
India has used trade remedies extensively against Chinese imports in sectors such as steel, chemicals, solar cells/modules, electronics, textiles, and pharmaceutical raw materials.

Connection to this news: The DGTR is the institutional mechanism through which India's stated commitment to "protecting industry from unfair trade practices" is operationalised — its investigative machinery handles the WTO-compliant process from petition to duty imposition.

India-EFTA Trade and Economic Partnership Agreement (TEPA)

The India-EFTA TEPA is a landmark agreement with four developed European nations: Switzerland, Norway, Iceland, and Liechtenstein — the founding members of the European Free Trade Association. It was signed on March 10, 2024 in New Delhi and came into force on October 1, 2025.

Covers: goods, rules of origin, trade facilitation, services, investment, intellectual property, SPS and TBT measures, and trade remedies.
Historic first: Binding investment commitment — USD 50 billion in the first 10 years + USD 50 billion in the next 5 years = USD 100 billion total — to generate 1 million direct jobs in India over 15 years. Article 7.1 of TEPA contains this commitment.
EFTA tariff concessions: 92.2% of tariff lines covering 99.6% of India's current exports to EFTA.
India's tariff concessions: 82.7% of tariff lines covering 95.3% of EFTA exports to India.
Investment facilitation: A dedicated India-EFTA Desk (operational since February 2025) functions as a single-window mechanism for Swiss, Norwegian, Icelandic, and Liechtenstein investors in India.
Key sectors for EFTA investment in India: precision engineering, pharmaceuticals, financial services, clean energy, and research & development.
EFTA is NOT the same as the EU — EFTA is a separate bloc. Switzerland, Norway, Iceland, and Liechtenstein are not EU members (though Norway and Iceland are in the European Economic Area).

Connection to this news: While India protects its industry on one track, the EFTA TEPA discussions represent the investment-attraction track — seeking capital and technology from high-income European economies where there is complementarity rather than competition with Indian domestic industries.

WTO Dispute Settlement and Trade Protection Limits

India's trade protection measures must operate within WTO rules. The WTO's Dispute Settlement Understanding (DSU) provides a rule-based mechanism for resolving trade disputes.

Anti-dumping, CVD, and safeguard duties can be challenged at the WTO Dispute Settlement Body (DSB).
India has been both a complainant and respondent in WTO disputes. High-profile disputes include US Section 232 tariffs on steel and aluminium (where India retaliated), and WTO cases against India's solar panel duties.
The WTO Appellate Body has faced a crisis since 2019 due to the USA blocking new appointments to the appellate bench — creating a gap in the two-tier dispute resolution system. The Multi-Party Interim Appeal Arbitration Arrangement (MPIA) was created by a group of WTO members (not including USA) as a temporary alternative.
"Unfair trade practices" in WTO parlance covers: dumping (below normal value), prohibited subsidies (export subsidies and import-substitution subsidies under ASCM Annex I), and trade-restrictive government measures that violate MFN (Most Favoured Nation) or national treatment obligations.
India's use of trade remedies has increased under pressure from cheap Chinese goods — particularly in steel (where Chinese overcapacity has suppressed global prices) and in electronics and solar equipment.

Connection to this news: India's stated stance — protecting domestic industry while engaging cooperatively in dialogue — reflects the WTO-consistent dual approach: unilateral measures where rules permit, multilateral dialogue where systemic issues require negotiated solutions.

Key Facts & Data

India-EFTA TEPA signed: March 10, 2024 (New Delhi)
India-EFTA TEPA in force: October 1, 2025
EFTA members: Switzerland, Norway, Iceland, Liechtenstein
TEPA investment commitment: USD 100 billion over 15 years (USD 50 bn in 10 yrs + USD 50 bn in next 5 yrs)
TEPA jobs commitment: 1 million direct jobs over 15 years
India-EFTA Investment Desk operational since: February 2025
DGTR established: May 2018 (under Ministry of Commerce and Industry)
Anti-dumping legal basis: Sections 9A, 9B, 9C of Customs Tariff Act, 1975
Safeguard duty basis: Section 8B of Customs Tariff Act, 1975
Anti-dumping implementing WTO text: Article VI of GATT 1994 + Anti-Dumping Agreement
Countervailing duty implementing WTO text: Agreement on Subsidies and Countervailing Measures (ASCM)
WTO Appellate Body crisis: began 2019 (USA blocking appointments); MPIA created as interim alternative
Anti-dumping duty validity period: 5 years (extendable via sunset review)
EFTA's tariff concession coverage: 92.2% of tariff lines, covering 99.6% of India's EFTA-bound exports
India's tariff concession to EFTA: 82.7% of tariff lines, covering 95.3% of EFTA exports to India
Investigation authority: DGTR (investigates, recommends); Ministry of Finance (imposes duty)