Indian Stainless Steel Development Association (ISSDA), Jindal Stainless, Jindal Stainless (Hisar) and Jindal Stainless Steel have filed an application on behalf of domestic industry before the directorate, alleging subsidisation of these products by Indonesia.
They have requested for initiation of an anti-subsidy investigation for levy of countervailing duties on imports of the goods.
According to a notification of the DGTR, it has found evidence of "countervailable subsidies" on production and export of the goods.
Such subsidised imports are causing material injury to the domestic industry, it said.
In view of this, "the authority hereby initiates an investigation into the alleged subsidisation and consequent material injury and threat of injury to the domestic industry," it said.
The directorate would determine the existence, degree and effect of alleged subsidisation.
If it is established that subsidies by Indonesia is impacting domestic industry, the DGTR would recommend the amount of countervailing duty, which if levied, would be adequate to remove the injury to the domestic industry.
Under the global trade rules of the World Trade Organisation (WTO), a member country is allowed to impose anti-subsidy to countervailing duty if a product is subsidised by the government of its trading partner.
These duties are trade remedies to protect domestic industry. Subsidy on a product makes it competitive in price terms in other markets. Countries provide this to boost their exports.
India and Indonesia are members of the WTO. Indonesia is a major trading partner of India.
The bilateral trade between the countries have increased to $21.12 billion in 2018-19 from $20.4 billion in the previous fiscal. Trade balance is in the favour of Indonesia.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.