Dumping Exposed: Are Cheap Imports Really a Win?
Introduction: From steel to solar panels, India’s markets are often flooded with extremely cheap imports , goods are priced so low that they damage domestic industries in such a way which almost threatens to wipe out domestic sectors. This practice is known as ‘ dumping ,’ which is one of the most controversial tactics in global trade. While it benefits consumers in the short term, it can cripple local manufacturers, distort competition, and deepen India’s trade imbalances. In simpler terms , dumping can be understood as a situation where the price of goods is lower in the importing country as compared to the cost of the goods in the exporting country. So, if the price of goods is cheaper in the importing country, then how does it affect the importing country? Dumping can be beneficial for the people of a country as they have to pay lower prices. However, people need to understand that these discounted goods have lower prices, but this raises a question about the quality of the goods. ...