India will remain vigilant and has the mechanism to deal with possible dumping of electric vehicles and batteries following steep hike in tariffs by the US on batteries, electric vehicles imports originating from China, a senior official said Wednesday.
“We have our Directorate General of Trade Remedies (DGTR) system functioning. Our anti-dumping system is functioning. If in case they want to dump it we have an institutional mechanism to look at it,” the official who did not wish to be named said.
On Tuesday, the US announced an increase in tariffs on non-lithium-ion battery parts to 25% from 7.5% on EVs to 100% from 25% from China. Solar cells, steel, and aluminium products will also see significant hikes. By 2025, semiconductors will face a tariff increase from 25% to 50%, with further increases planned for other products in 2026.
“The US is following policies through which it wants to reduce its dependence on China in energy transition. Everyone has seen post Covid it is not a good idea to put all eggs in one basket. Same is the policy in India. We are also building our capacities in manufacturing,,” the official said.
“We are following policies which will ensure that India has sufficient capabilities for production of EVs and batteries.”
The duties have also been imposed on previously untaxed products like face masks, critical minerals, and ship-to-shore cranes.
“Higher duties on Chinese face masks, syringes and needles, medical gloves and natural graphite presents a significant opportunity for India. By ramping up production and export of these in-demand products, India could enhance its trade footprint in the U.S. market,” founder of Global Trade Research Initiative (GTRI) Ajay Srivastava said.
“India may not get any export advantage on remaining products like the EVs, semiconductor as India is the net importer of these products.The US and EU are taking active measures to cut reliance on China. With stagnant exports and rising imports from China, India may also need a China strategy,” he added.
