Dumped Imports Continue To Erode MSME Manufacturing Capacity: C-DEP Report

A new report from India's Centre for Domestic Economy Policy Research (C-DEP), released on June 19, warns that rampant dumped imports are systematically dismantling the manufacturing capacity of the nation's Micro, Small and Medium Enterprises (MSMEs). The study, 'Impact of Anti-Dumping Duties in India,' urgently calls for the timely implementation of anti-dumping duties to stem a projected economic loss potentially soaring to INR 2.70 lakh crore by 2030, highlighting that critical sectors like sublimation paper and mobile phone back covers are already facing severe shutdowns and market share erosion. This comes as the Directorate General of Trade Remedies (DGTR) has recently recommended duties in multiple cases, including a final ruling for nylon filament yarn in March 2026, yet implementation often faces delays. The stakes couldn't be higher for India's industrial resilience and job creation, especially for MSMEs, which are disproportionately vulnerable to predatory pricing due to their limited financial buffers and narrow product bases. C-DEP, in collaboration with the Centre for WTO Studies, revealed that despite significant investments in these sectors, foreign producers' unfair trade practices are leading to reduced capacity utilisation and weaker cash flows. Contrary to popular concerns, the report empirically demonstrates that the average impact of anti-dumping duties on downstream costs is negligible, around 0.0227 percent across 56 product cases, effectively debunking arguments that trade remedies fuel inflation. Policymakers now face mounting pressure to accelerate the imposition of DGTR-recommended duties, with the report specifically urging the Ministry of MSME to review pending notifications and integrate MSME impact as a distinct factor in public interest assessments. With investigations initiated for sublimation paper and mobile phone back covers in late 2025, and a recent anti-dumping probe launched for the chemical Resorcinol on June 19, the coming months will reveal whether India's government can swiftly operationalize these protective measures to safeguard its domestic manufacturing ecosystem and prevent further economic and employment fallout.