The Indian government has taken a significant step to protect its domestic optical fibre industry by imposing a five-year anti-dumping duty on imports of optical fibre from countries such as China, Korea, and Indonesia. The decision comes after an investigation by the Directorate General of Trade Remedies, the investigative wing of the Commerce Ministry, found that these countries were selling optical fibre to India at prices below normal values, causing “material injury” to Indian manufacturers like Sterlite Technologies, Birla Furukawa Fibre, and American Corning.
The anti-dumping order issued by the Finance Ministry aims to curb the influx of low-priced and low-quality fibre into India, which could potentially jeopardize the country’s digital ambitions, especially concerning its 5G and rural broadband networks. The indigenous optical fibre industry considers this move a strategic one that will unlock growth potential and secure the future of high-quality network infrastructure in India.
Ankit Agarwal, Managing Director of Sterlite Technologies, emphasized the critical role of optical fibre in India’s digital transformation. He warned that substandard fibre imports from the mentioned countries could significantly impact the longevity and quality of India’s 5G and rural broadband networks, compromising nearly a decade of the fibber’s lifespan.
The domestic industry welcomes the prescribed anti-dumping measures as an effective deterrent against unfair competition. Kapil Mehta, CEO of Birla Furukawa Fibre Optics, pointed out that the Indian optical fibre industry is self-sufficient in producing high-quality fibre and remains competitive globally. With a capacity nearly two to three times more than what is required, India has no justifiable reason to rely on imports that not only undermine the domestic industry’s competitiveness but also compromise the quality of fibre networks.
The timing of the government’s decision is crucial, given India’s ongoing efforts towards digitization through initiatives like Bharat Net, a massive rural outreach program. Additionally, private operators are actively incorporating fibre into their networks to support the growing demand for 4G and 5G services.
By imposing the anti-dumping duty, the government seeks to protect the interests of domestic optical fibre manufacturers and ensure the development of a robust, high-quality network infrastructure for India’s digital future. The move aligns with the nation’s vision of a digitally connected India, laying the groundwork for increased accessibility and connectivity, especially in rural areas.
News Mania Desk / Agnibeena Ghosh 6th August 2023
