India may impose an anti-dumping duty on imports of acrylic fiber from the European Union, China, Belarus, Ukraine and Peru. There are evidences of dumping of acrylic fiber from these regions. Anti-dumping duties are levied to provide a level playing field to local industry by guarding against cheap below cost imports.

Countries dump products in India as it is one of the most attractive markets for global producers due to its large middle-class population. Imposition of anti-dumping duty is permissible under the WTO regime. Both India and China are members of the Geneva-based body.

WTO does not regulate the actions of companies engaged in dumping. Instead, it focuses on how countries can or cannot react to dumping. The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a- vis foreign producers and exporters.

An anti-dumping duty is a protectionist tariff on foreign imports that it believes are priced below fair market value. Dumping is a process where a company exports a product at a price lower than the price it normally charges on its own home market. To protect local businesses and markets, many countries impose stiff duties on products they believe are being dumped in their market.