New Delhi: India plans to impose anti-dumping duties on ethambutol hydrochloride — a critical input used in tuberculosis (TB) drugs — to curb cheap imports from China and Thailand, according to a government order reviewed by Mint.
According to the order, the Directorate General of Trade Remedies (DGTR) in its preliminary investigation found prima facie evidence that imports of ethambutol hydrochloride from China and Thailand were entering the Indian market at artificially depressed prices, causing material injury to the domestic industry. DGTR functions under the Ministry of Commerce of the Union Ministry of Commerce.
According to Commerce Department data, imports of ethambutol hydrochloride from China and Thailand were negligible until FY24, but surged in FY25, with total imports jumping from $0.14 million to $4.50 million in a single year.
According to the order, the DGTR recommended imposition of provisional anti-dumping duties ranging from $5,124 to $6,513 per tonne. The proposed duty is $5,124 per ton on imports from China’s Wuhan Wuyao Pharmaceuticals Co. Ltd, US$6,096 per tonne for imports from other Chinese producers and exporters and US$6,513 per tonne for imports from Thailand, regardless of manufacturer.
“The anti-dumping duty on critical TB drug APIs (active pharmaceutical ingredients) is a necessary policy intervention to address market distortions caused by persistent cheap imports and to protect domestic manufacturing capacity. Strengthening local API production is essential not only for self-sufficiency but also to ensure uninterrupted access to essential drugs for both domestic and global TB programs,” said Arun Kumar National Jha, Chancellor Technology.
The move is aimed at boosting domestic manufacturing capacity for APIs used in life-saving drugs and reducing India’s dependence on imports, especially from China.
The DGTR investigation covered the period from 1 April 2024 to 31 March 2025, with the injury analysis covering FY22 to FY25. The DGTR found that imports from the countries concerned increased significantly during the investigation period, leading to price undercutting, suppressing domestic prices and deteriorating the profitability and returns of the domestic producer.
According to the DGTR, the obligations, if notified by the Ministry of Finance, will apply during the investigation.
This development takes on significance as India is a major supplier of TB drugs globally and continued dependence on imports of critical inputs has raised concerns about supply chain resilience.
The findings come against the backdrop of India imposing a minimum import price (MIP) on some bulk drugs, APIs and intermediates to encourage domestic manufacturing and curb cheap imports from China.
An API is the main chemical in a drug that has a therapeutic effect.
Indian companies have also started producing APIs under the government’s Production Linked Incentives (PLI) scheme, which was launched in 2020.
“The imposition of anti-dumping duty on key TB drug APIs from China and Thailand is a positive step that will help protect domestic manufacturers from prolonged price undercutting and support capacity building in India. The measure is also expected to strengthen supply chain resilience for essential drugs while ensuring that India continues to play its role as a reliable global supplier of TB drugs,” said Amit Singh, Associate Professor at the Special Center for National Security Studies.