Explanation:

Only statements 1&3 are correct.

• India has initiated an anti-dumping probe into imports of certain solar glass from China and Vietnam, following a complaint by domestic players.

About Anti-Dumping Duty

• Anti-dumping duty is a tariff imposed on imports manufactured in foreign countries that are priced below the fair market value of similar goods in the domestic market.

• The government imposes anti-dumping duty on foreign imports when it believes that the goods are being “dumped” – through the low pricing – in the domestic market.

• Anti-dumping duty is imposed to protect local businesses and markets from unfair competition by foreign imports.

• Thus, the purpose of anti-dumping duty is to rectify the trade distortive effect of dumping and re-establish fair trade.

• The use of anti-dumping measure as an instrument of fair competition is permitted by the World Trade Organization (WTO). 

• The WTO allows the government of the affected country to take legal action against the dumping country as long as there is evidence of genuine material injury to industries in the domestic market.

• The government must show that dumping took place, the extent of the dumping in terms of costs, and the injury or threat to cause injury to the domestic market.

• While the intention of anti-dumping duties is to protect local businesses and markets, these tariffs can also lead to higher prices for domestic consumers.

Hence option 2nd is correct.