India plans curbs on cheap API imports from China to shield TB drug makers

As per the order, the Directorate General of Trade Remedies (DGTR) in its preliminary investigation has 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. The DGTR functions under the Union commerce ministry's Department of Commerce.

As per commerce ministry data, imports of ethambutol hydrochloride from China and Thailand were negligible until FY24, but it rose sharply in FY25, with total imports jumping from $0.14 million to $4.50 million in a single year.

As per the order, the DGTR has recommended the imposition of provisional anti-dumping duties ranging from $5,124 to $6,513 per tonne. The proposed duty is $5,124 per tonne on imports from China’s Wuhan Wuyao Pharmaceuticals Co. Ltd, $6,096 per tonne on imports from other Chinese producers and exporters, and $6,513 per tonne on imports from Thailand, irrespective of the producer.

“Anti-dumping duty on critical TB drug APIs (active pharmaceutical ingredients) is a necessary policy intervention to address market distortions caused by sustained low-priced imports and to safeguard domestic manufacturing capability. Strengthening local API production is essential not only for self-reliance but also for ensuring uninterrupted access to essential medicines for both domestic and global TB programmes," said Arun Kumar Jha, chancellor, National Institute of Advanced Manufacturing Technology (NIAMT), Ranchi.

The move is aimed at strengthening domestic manufacturing capability for APIs used in life-saving drugs and reducing India’s dependence on imports, particularly from China.

The DGTR’s probe covered the period from 1 April 2024 to 31 March 2025, with injury analysis spanning FY22 to FY25. The DGTR observed that imports from the subject countries increased significantly during the period of investigation, leading to price undercutting, suppression of domestic prices and deterioration in profitability and returns for the domestic producer.

As per the DGTR, the duties, if notified by the finance ministry, will apply during the pendency of the investigation.

The development assumes significance given that India is a major supplier of TB medicines globally, and sustained import dependence for critical inputs has raised concerns over supply-chain resilience.

The findings come in the backdrop of India imposing a minimum import price (MIP) on certain bulk drugs, APIs and intermediates to support domestic manufacturing and curb cheap imports from China.

API is the main chemical substance in a drug that produces the therapeutic effect.

Also, Indian companies have started manufacturing APIs under the government's production-linked incentive (PLI) scheme launched in 2020.

“Imposing anti-dumping duty on key TB drug APIs from China and Thailand is a positive move that will help protect domestic manufacturers from prolonged price undercutting and encourage capacity creation in India. The measure is also expected to strengthen supply-chain resilience for essential medicines, 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 Centre for National Security Studies, JNU.