Chinese Bulk Drugs to Attract Heavy Anti-Dumping Duty in India

The loss-making Indian chemical industry is expecting to bounce back after the Modi administration’s decision to levy a heavy anti-dumping duty on the cheap Chinese APIs (Active Pharmaceutical Ingredients) preferred by local drug manufacturers.

New Delhi (Sputnik) — India's Directorate-General of Antidumping and Allied Duties (DGAD) said it has established that the domestic chemical industry has suffered a 'material injury' due to imports of Ofloxacin Acid, which is used by pharmaceuticals. It went on to recommend an antidumping duty to the tune of US $4.16 to US$8.55 per kilogram of the chemical. 

 "The Authority considers it necessary to recommend imposition of a definitive anti-dumping duty on imports of subject goods from the subject country for three years," the DGAD said in a notification. 

Ofloxacin Acid is used in the production of Ofloxacin, which is used to treat bronchitis, pneumonia, and infections of the skin, bladder, urinary tract, reproductive organs, and the prostate. 

India imports most of its raw materials for medicine from China, Germany, the US, Italy, and Singapore. "Most of the imports of the Bulk Drugs/Active Pharmaceutical Ingredients (APIs) being done in the country are because of economic considerations. During the year 2016-17, the share of China in the total APIs imported into the country was approximately 66%," according to India's Ministry of Chemicals & Fertilizers. 

At least 41 of the 100 Chinese goods affected by the anti-dumping duty in India consist of chemicals and petrochemicals. The remaining goods include electrical and electronic items and accessories, fibers and yarn, machinery items, rubber or plastic products, steel and other metals. 

However, such measures have not deterred the  Chinesedragon from expanding its trade in India.  China's share in India's total imports during April-August 2017 stood at 16.77%, up 5.2% from the last fiscal. India's total imports since April 2016 — March 2017 were estimated at $384.35 billion, out of which goods worth $61.28 billion came from China.