India Plans Anti-Dumping Duties on TB Drug APIs from China and Thailand
The Indian government is planning to impose provisional anti-dumping duties on ethambutol hydrochloride, a critical active pharmaceutical ingredient (API) used in tuberculosis (TB) medicines, to curb cheap imports from China and Thailand. This move aims to strengthen domestic manufacturing capabilities for life-saving drugs and reduce India's dependence on imports, particularly from China.
DGTR Investigation and Recommended Duties
The Directorate General of Trade Remedies (DGTR), which operates under the Union commerce ministry's Department of Commerce, conducted a preliminary investigation and found prima facie evidence that imports of ethambutol hydrochloride from China and Thailand were entering the Indian market at artificially depressed prices. This has caused material injury to the domestic industry.
According to the DGTR's findings, the probe covered the period from 1 April 2024 to 31 March 2025, with injury analysis spanning FY22 to FY25. The investigation revealed that imports from the subject countries increased significantly during this period, leading to price undercutting, suppression of domestic prices, and deterioration in profitability for domestic producers.
The DGTR has recommended the imposition of provisional anti-dumping duties ranging from $5,124 to $6,513 per tonne. Specifically:
- $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
- $6,513 per tonne on imports from Thailand, irrespective of the producer
If notified by the finance ministry, these duties will apply during the pendency of the investigation.
Rising Imports and Domestic Concerns
Commerce ministry data shows that imports of ethambutol hydrochloride from China and Thailand were negligible until FY24 but rose sharply in FY25. Total imports jumped from $0.14 million to $4.50 million in a single year, highlighting the rapid increase in cheap imports that have impacted the domestic market.
This development is significant given that India is a major supplier of TB medicines globally. Sustained import dependence for critical inputs has raised concerns over supply-chain resilience, making this policy intervention crucial for ensuring uninterrupted access to essential medicines.
Expert Opinions and Broader Context
Arun Kumar Jha, chancellor of the National Institute of Advanced Manufacturing Technology (NIAMT) in Ranchi, emphasized the importance of this move. He stated, "Anti-dumping duty on critical TB drug APIs 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."
Amit Singh, associate professor at the Special Centre for National Security Studies, JNU, added, "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."
Government Initiatives and Future Implications
This action aligns with broader government efforts to support domestic pharmaceutical manufacturing. India has previously imposed a minimum import price (MIP) on certain bulk drugs, APIs, and intermediates to curb cheap imports from China. Additionally, Indian companies have started manufacturing APIs under the government's production-linked incentive (PLI) scheme launched in 2020.
The move to impose anti-dumping duties on TB drug APIs is part of a strategic push to enhance India's self-reliance in pharmaceutical production, protect domestic industries from unfair trade practices, and secure the supply chain for critical medicines. This step is expected to foster a more robust domestic API manufacturing ecosystem, contributing to India's position as a key player in the global healthcare landscape.
