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What measures is India implementing to counteract the impact of increased Chinese imports on its economy?
- a)Reducing tariffs on Chinese goods
- b)Collaborating exclusively with neighboring countries
- c)Imposing anti-dumping and anti-subsidy duties
- d)Completely banning all imports from China
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
What measures is India implementing to counteract the impact of increa...
India is responding to the challenge posed by increased Chinese imports by imposing anti-dumping and anti-subsidy duties. These measures aim to protect local industries from unfair competition and stabilize the trade balance. Additionally, India is seeking to enhance its domestic manufacturing capabilities and reduce reliance on imports. An interesting fact is that despite these measures, India's imports from China have continued to rise significantly, highlighting the complexity of global trade dynamics.
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What measures is India implementing to counteract the impact of increa...
The correct answer is options c because:-
India is taking measures to counteract the impact of increased Chinese imports on its economy by imposing anti-dumping and anti-subsidy duties:
Anti-dumping duties
India has launched anti-dumping investigations into Chinese products like vacuum-insulated flasks, tempered glass, and aluminum foil. The purpose of anti-dumping duties is to determine if domestic industries have been harmed by a surge in cheap imports. For example, India imposed anti-dumping duties on hydraulic rock breakers, ranging from 4.55% to 162.5% of the cost, insurance, and freight (CIF) value in US dollars.
Countervailing duties
India has imposed countervailing duties on goods that are subsidized by their country of origin. The amount of countervailing duties depends on the value of the subsidies.
Safeguard duties
India has imposed safeguard duties to protect domestic industries from a surge in imports of a particular product. Safeguard duties are temporary measures that apply regardless of the country of export.
India is taking measures to counteract the impact of increased Chinese imports on its economy by imposing anti-dumping and anti-subsidy duties:
Anti-dumping duties
India has launched anti-dumping investigations into Chinese products like vacuum-insulated flasks, tempered glass, and aluminum foil. The purpose of anti-dumping duties is to determine if domestic industries have been harmed by a surge in cheap imports. For example, India imposed anti-dumping duties on hydraulic rock breakers, ranging from 4.55% to 162.5% of the cost, insurance, and freight (CIF) value in US dollars.
Countervailing duties
India has imposed countervailing duties on goods that are subsidized by their country of origin. The amount of countervailing duties depends on the value of the subsidies.
Safeguard duties
India has imposed safeguard duties to protect domestic industries from a surge in imports of a particular product. Safeguard duties are temporary measures that apply regardless of the country of export.
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What measures is India implementing to counteract the impact of increa...
Impact of Increased Chinese Imports on India's Economy
India has been facing challenges due to a surge in imports from China, which has implications for local industries and the economy. To address these issues, the Indian government has implemented several measures, among which imposing anti-dumping and anti-subsidy duties stands out as a key strategy.
Understanding Anti-Dumping and Anti-Subsidy Duties
- Anti-dumping duties are tariffs imposed on foreign imports priced below fair market value, which helps protect domestic industries from unfair competition.
- Anti-subsidy duties are imposed on goods that benefit from foreign government subsidies, counteracting the advantage these goods have over local products.
Reasons for Implementing These Measures
- Protecting Domestic Industries: By imposing these duties, India aims to safeguard its manufacturing sectors, allowing local businesses to compete more effectively against cheaper Chinese imports.
- Encouraging Local Production: The duties incentivize domestic production and investment, helping to boost the overall economy and create jobs.
- Balancing Trade Deficit: With China being a significant trading partner, these measures help in addressing the trade imbalance, thus enhancing economic stability.
Conclusion
While reducing tariffs or completely banning imports may seem tempting, such approaches could lead to retaliation or disrupt supply chains. The strategy of imposing anti-dumping and anti-subsidy duties is a more balanced approach, aimed at protecting local industries while still engaging in necessary trade. This method not only addresses immediate economic concerns but also promotes sustainable growth for India's manufacturing sector.
India has been facing challenges due to a surge in imports from China, which has implications for local industries and the economy. To address these issues, the Indian government has implemented several measures, among which imposing anti-dumping and anti-subsidy duties stands out as a key strategy.
Understanding Anti-Dumping and Anti-Subsidy Duties
- Anti-dumping duties are tariffs imposed on foreign imports priced below fair market value, which helps protect domestic industries from unfair competition.
- Anti-subsidy duties are imposed on goods that benefit from foreign government subsidies, counteracting the advantage these goods have over local products.
Reasons for Implementing These Measures
- Protecting Domestic Industries: By imposing these duties, India aims to safeguard its manufacturing sectors, allowing local businesses to compete more effectively against cheaper Chinese imports.
- Encouraging Local Production: The duties incentivize domestic production and investment, helping to boost the overall economy and create jobs.
- Balancing Trade Deficit: With China being a significant trading partner, these measures help in addressing the trade imbalance, thus enhancing economic stability.
Conclusion
While reducing tariffs or completely banning imports may seem tempting, such approaches could lead to retaliation or disrupt supply chains. The strategy of imposing anti-dumping and anti-subsidy duties is a more balanced approach, aimed at protecting local industries while still engaging in necessary trade. This method not only addresses immediate economic concerns but also promotes sustainable growth for India's manufacturing sector.
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What measures is India implementing to counteract the impact of increased Chinese imports on its economy?a) Reducing tariffs on Chinese goodsb) Collaborating exclusively with neighboring countriesc) Imposing anti-dumping and anti-subsidy dutiesd) Completely banning all imports from ChinaCorrect answer is option 'C'. Can you explain this answer? for CUET Commerce 2025 is part of CUET Commerce preparation. The Question and answers have been prepared according to the CUET Commerce exam syllabus. Information about What measures is India implementing to counteract the impact of increased Chinese imports on its economy?a) Reducing tariffs on Chinese goodsb) Collaborating exclusively with neighboring countriesc) Imposing anti-dumping and anti-subsidy dutiesd) Completely banning all imports from ChinaCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CUET Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What measures is India implementing to counteract the impact of increased Chinese imports on its economy?a) Reducing tariffs on Chinese goodsb) Collaborating exclusively with neighboring countriesc) Imposing anti-dumping and anti-subsidy dutiesd) Completely banning all imports from ChinaCorrect answer is option 'C'. Can you explain this answer?.
What measures is India implementing to counteract the impact of increased Chinese imports on its economy?a) Reducing tariffs on Chinese goodsb) Collaborating exclusively with neighboring countriesc) Imposing anti-dumping and anti-subsidy dutiesd) Completely banning all imports from ChinaCorrect answer is option 'C'. Can you explain this answer? for CUET Commerce 2025 is part of CUET Commerce preparation. The Question and answers have been prepared according to the CUET Commerce exam syllabus. Information about What measures is India implementing to counteract the impact of increased Chinese imports on its economy?a) Reducing tariffs on Chinese goodsb) Collaborating exclusively with neighboring countriesc) Imposing anti-dumping and anti-subsidy dutiesd) Completely banning all imports from ChinaCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CUET Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What measures is India implementing to counteract the impact of increased Chinese imports on its economy?a) Reducing tariffs on Chinese goodsb) Collaborating exclusively with neighboring countriesc) Imposing anti-dumping and anti-subsidy dutiesd) Completely banning all imports from ChinaCorrect answer is option 'C'. Can you explain this answer?.
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What measures is India implementing to counteract the impact of increased Chinese imports on its economy?a) Reducing tariffs on Chinese goodsb) Collaborating exclusively with neighboring countriesc) Imposing anti-dumping and anti-subsidy dutiesd) Completely banning all imports from ChinaCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for What measures is India implementing to counteract the impact of increased Chinese imports on its economy?a) Reducing tariffs on Chinese goodsb) Collaborating exclusively with neighboring countriesc) Imposing anti-dumping and anti-subsidy dutiesd) Completely banning all imports from ChinaCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of What measures is India implementing to counteract the impact of increased Chinese imports on its economy?a) Reducing tariffs on Chinese goodsb) Collaborating exclusively with neighboring countriesc) Imposing anti-dumping and anti-subsidy dutiesd) Completely banning all imports from ChinaCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
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