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India begins probe into alleged dumping of batteries from China, Japan

The Indian government, said on Monday, that it had started an investigation into alleged dumping of lead acid batteries by China, Japan, South Korea and Bangladesh.

An anti dumping cell of India's Commerce Ministry began the investigation on the basis of a petition filed by two domestic firms, Exide Industries and Amara Raja Batteries.

The Directorate General of Anti Dumping (DGAD) said there was preliminary evidence that the price at which the batteries were being sold in the domestic market was lower than in the countries where they were manufactured. A government notification said the petitioners had furnished evidence to show that the battery imports had hurt local manufacturers.

The Indian government recently initiated investigations against alleged dumping of toys, batteries and sports shoes by China, following widespread concern over cheap imports.

Industry representatives say that Chinese-made umbrellas, calculators, pencils, leather items and other goods have flooded several Indian towns and cities. However, Chinese officials have denied such reports, saying exports of Indian goods into China were growing much faster than China's sales to India.

The fresh investigations into dumping began even as Li Peng, China's second-highest leader, was on a week-long visit to India in order to promote better political and business ties.

India's foreign ministry has maintained that the investigations into dumping were not targeted at any specific country and were being done in full compliance with the rules of the World Trade Organisation.

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