Dumping is an international trade practice in which a company or country exports goods to a foreign market at a price lower than the normal value — defined as either the price charged in the exporter's domestic market or the cost of production — with the intent (or effect) of gaining market share, eliminating foreign competition, or disposing of excess inventory. Dumping is considered an unfair trade practice under World Trade Organisation (WTO) rules, and the affected importing country is permitted to impose anti-dumping duties (ADD) on the dumped goods to neutralise the price advantage. India is one of the world's most active users of anti-dumping investigations, particularly against imports from China in sectors including steel, chemicals, electronics, solar panels, and textiles. For equity investors and sector analysts on Ventura Securities, monitoring anti-dumping duty announcements by the Directorate General of Trade Remedies (DGTR) and the Ministry of Finance is critical — the imposition or removal of ADD can materially alter the competitive landscape, pricing power, and earnings trajectory for domestic manufacturers in affected sectors.
