India to probe spike in imports of 14 goods amid US tariff action: report

India has launched an investigation into a sudden monthly increase in imports of several goods from countries such as China, Malaysia, Indonesia, Bangladesh, and Nepal, Mint reported.

The move comes at a time when global trade is experiencing major changes due to higher tariffs imposed by the US.

The investigation covers at least 14 product categories, including steel tubes, certain chemicals, paperboards, jute items, and different types of glass, people in the know told Mint.

Industry bodies and government departments have been asked to monitor and report irregular import patterns that may be linked to trade redirection, the report added.

Trade analysts reportedly suspect that a portion of goods originally meant for the US market are now being sent to India through third-party countries with trade agreements in place.

Another person familiar with the matter told the business daily that textured tempered glass from Malaysia and multilayered paperboard from Indonesia are under review, with concerns that they might have originated in China.

The situation has reignited debate over the ASEAN-India Free Trade Agreement, signed in 2009. Since then, India’s trade deficit with the 10 ASEAN nations has increased significantly.

The Indian government has called for changes to the agreement, particularly to its rules of origin clause.

Talks to revise the deal have gone through nine rounds, the next two meetings reportedly being scheduled for August in New Delhi and October in Malaysia.

Meanwhile, India is using trade protection tools to address the issue.

The commerce ministry is sharing data with other ministries to identify import surges, while the Directorate General of Trade Remedies has started anti-dumping probes into several imports from China.

The government will also reportedly introduce a monthly ‘Global Trade Watch’ to help ministries assess trade developments and risks at the product and country levels.