India starts anti-dumping probe into Penicillin G imports from China

India has started an anti-dumping investigation into imports of Penicillin G and its salts from China. The move follows a complaint from domestic manufacturer Lyfius Pharma, which stated that these imports are causing material damage to the local industry. Lyfius Pharma has asked the government to put anti-dumping duties in place.

Investigation Details

The Directorate General of Trade Remedies, which works under the Ministry of Commerce and Industry, issued a notification to start the probe. The agency agreed with the company's suggestion to use the period of 2025-26 for the investigation. The Directorate stated there is enough initial evidence showing that the product is being dumped into the domestic market by exporters from China.

Industry Background

Lyfius Pharma is a subsidiary of Aurobindo Pharma and serves as the sole eligible producer of this product in India, with no other domestic manufacturers. The company stated that cheap imports have stopped it from reaching expected levels of production and sales, forcing it to lower its prices to match imported goods. The company started making Penicillin G more than two years ago under the government's production linked incentive scheme, bringing back production of this antibiotic after about three decades. Prime Minister Narendra Modi inaugurated the company's 15,000-tonne facility in Kakinada, Andhra Pradesh, in October 2024. The project involved an investment of ₹2,500 crore under the Centre's PLI scheme. India previously made Penicillin G until the late 1980s, but earlier global imports forced all local plants to shut down. In March 2024, then Union Minister Mansukh Mandaviya noted the government's efforts to revive local manufacturing of the antibiotic. Aurobindo Pharma stated earlier this year that it expects to make more than 10,000 metric tonnes annually over the following 12 months.

Product Uses

The product under investigation covers Penicillin G in all forms, grades, strengths, and concentrations, including its salt forms in solid and liquid states. It acts as a key starting material and active pharmaceutical ingredient for various medicines that treat bacterial infections, such as pneumonia, dental infections, diphtheria, and meningitis.

Context

Governments use anti-dumping duties to protect local industries when foreign companies sell goods below production cost, which can hurt domestic businesses. Bringing back active pharmaceutical ingredient manufacturing helps countries reduce their reliance on foreign suppliers for essential medicines.