Dumping means that exporting a product at a lower rate than what you charge in your local market. Govt's take anti-dumping measures to prevent their local companies and people working in them.
Take for example a person exporting a product and getting $100 back. 1 year back he would be getting 4500 from his exports. Now with rupee at 40 against dollar, that person will be getting 4000. But if he has to get 4500, the product should now be exported for $112.5. Because of exports getting hit due to increase in price, exporters tend to keep the existing price just like that. This results in dumping. Because if the same product is being manufactured in US and they are importing raw materials from other countries and if their cost of manufacturing has increased due to the weaking of dollar, then they would hike the prices to $112.5 (in case of above example). If our exporters continue selling that product for $100 taking their profits a hit, that would result in dumping and govt's coming into picture preventing these exports to help their companies and employees within.
Thus every exporters have to do their risk analysis because of the rupee appreciation.
