Explained: Why European Commission has imposed anti-dumping duty on 10 Indian optical fibre cable companies

The European Commission (EC) is proposing anti-dumping duties on Indian optical fiber cable (OFC) manufacturers. This means that Indian companies exporting OFC to Europe could face additional duties ranging from 8.7% to 11.4%.
Why the anti-dumping duty on Indian OFC makers
The EC claims to have investigated Indian OFC manufacturers for six months, suspecting them of “dumping.” Mahendra Nahata, managing director at HFCL, told Economic Times, “Dumping is established in two scenarios, one, when any producer is selling the exports below its cost of production or second, if it is selling at a price lower than the home country.” He added, “Both scenarios are detrimental trade practices and after a six-month long investigation, HFCL is the only producer which was found to be transparent in following fair business practices.”
Which all Indian companies are impacted
Several Indian companies, including Sterlite Technologies, Birla Cables, and Universal Cables, could face these duties.Also, other associated companies including ZTT India, UM Cables, Aksh Optifibre, Apar Industries, Polycab India and Aberdare Technologies could be hit by a penalty of 9.9%, according to an EC notification dated 14 June. However, HFCL, another major player, was found to be following fair trade practices and is exempt.

Impact on Indian OFC exporters

The proposed duty is not final. The EC will hold consultations and legal proceedings over the next six months. Indian companies are expected to participate in this process. If implemented, the duties would increase the cost of Indian OFC exports, making them less competitive in the European market. This could potentially hurt Indian businesses and limit their reach in Europe.
India exported nearly Rs 39,600 crore worth of OFC in 2024, with Europe being a major destination. This industry offers growth opportunities for Indian companies, especially considering the rising demand for fiber-optic infrastructure in Europe and the US.