According to recent reports, the Directorate General of Trade Remedies (DGTR), an arm of India's Commerce Ministry, has taken action to safeguard the domestic optical fibre industry by imposing an anti-dumping duty on optical fibres imported from China, Korea, and Indonesia.

The move comes as a response to concerns over artificially low rates that have allowed these imports to dominate the market and negatively impact local businesses. The decision, as mentioned in the gazette notification, is aimed at curbing the injury caused to the domestic markets due to such imports.

Furthermore, the notification specifies that the anti-dumping duty will remain effective for a duration of five years unless revoked, superseded, or amended earlier, starting from the date of publication. This measure is likely to provide significant relief to both domestic businesses and international companies that manufacture optical fibres locally. The Indian market includes prominent players such as Sterlite Industries, Birla Cable, Birla Furukawa Fibre Optics, HFCL, and American Corning, who are set to benefit from the duty imposition.

As per media reports, the decision to impose the anti-dumping duty comes amidst India's ongoing digitization drive, particularly with the ambitious Bharat Net rural outreach plan, where commercial operators are integrating optical fibre into their networks to support advanced 4G and 5G services.

Local manufacturers have been vocal about the adverse effects of cheap imports, primarily from China, on their business. The DGTR's investigation substantiated their claims, revealing that the dumping of optical fibres had a substantial impact on Indian manufacturers. The agency noted that the growth in demand for optical fibres was largely offset by the influx of dumped imports, further exacerbating the situation.

India's decision to impose the anti-dumping duty on optical fibres from China, Korea, and Indonesia aims to bolster the domestic industry and protect it from the adverse consequences of artificially low-priced imports. The move is expected to foster a more conducive environment for local businesses and promote a level playing field in the optical fibre market.

Image source: ET