1.1 Introductory Framework
The Advent of 1991 policies relating to liberalization privatization and globalization imperceptibly distends the space for market forces hence reducing the aspect for government in business.
The substitution of the quondam Monopolies and Restrictive Trade Practices Act (MRTP), 1969 by the Competition Act, 2002 for the reason that aforesaid Act had become outmoded in certain areas and there was a serious need to shift the focus from suppress monopolies to encourage competition in order to expedite India’s progress towards a market economy
A high level Committee was formed in the year 1999 to suggest new competition laws of modern time which is in line with international advancement to …show more content…
The normal value is the comparable price, at which the goods under complaint fare sold, in the ordinary course of trade, in the domestic market of the exporting country or territory.
This is an unfair trade practice which can have a distortive effect on international trade as if we import goods at less than normal price from other countries then obviously consumer will prefer goods with lesser price to cut its input’s cost and thus will try to increase its profits. . Thus Anti dumping is a measure to rectify the situation arising out of the dumping of goods and its trade distortive effect. The use of the Anti Dumping Measures is permitted by the WTO as an instrument of fair competition.
After India achieved independence, there was a serious need of industrialization to free the country from the various evils of society like poverty, unemployment etc. The Industrial Policy Resolution which was adopted by the Government during the early 1950s determined the growth of industries with the aim of achieving economic independence and prosperity which will lead to industrialization of the country. The basic need for a strong anti-dumping law was also felt in order to protect the Indian industries from the unfair competition of some foreign …show more content…
Anti-dumping theory says that price discrimination is an undesirable practice whereby predatory exporters attack markets by shipping at unfairly lower prices, driving local competitors out of business, and expanding monopoly or oligopoly power. Anti-dumping duties, under this theory, are necessary to counteract predatory price discrimination by exporters. Economists, academics and government organizations roundly criticize this justification for anti-dumping duties, for a variety of reasons, discussed