India Probes Chinese Penicillin G Imports for Dumping

On 28 September 2026, India’s Directorate General of Trade Remedies (DGTR), under the Ministry of Commerce and Industry, initiated an anti-dumping investigation into imports of Penicillin G (Pen-G) and its salts from China. The probe followed an application by domestic manufacturer Lyfius Pharma Private Limited, which alleged that the imports were causing material retardation to the establishment of India’s domestic industry.

Scope of the investigation

The product under investigation covers Penicillin G in all forms, grades, strengths and concentrations, as well as its salt forms. Penicillin G is used as a key starting material and active pharmaceutical ingredient in medicines. The period of investigation runs from 1 April 2025 to 31 March 2026. The DGTR found sufficient prima facie evidence of dumping and material retardation to initiate the investigation. A prima facie finding is an initial assessment of evidence and is not a final determination of dumping or injury.

Anti-dumping framework

Dumping generally refers to exporting a product at a price below its normal value in the exporting country. Under the World Trade Organization’s Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade, an anti-dumping measure requires a finding of dumping, material injury or threat to a domestic industry, and a causal link between the dumped imports and injury. In India, the DGTR investigates alleged dumping and recommends trade-remedy measures. If the investigation establishes the required conditions, the DGTR may recommend an anti-dumping duty; the final decision on imposing the duty rests with the Ministry of Finance.

Domestic Penicillin G production

Prime Minister Narendra Modi inaugurated Lyfius Pharma’s Penicillin G facility in Kakinada, Andhra Pradesh, in October 2024. The facility has a stated capacity of 15,000 tonnes. Its establishment was intended to revive domestic production after a hiatus dating to the late 1980s. India launched seven anti-dumping investigations against products from China between 23 and 28 September 2026; four concerned pharmaceutical products.

Important Facts for Exams

• The Directorate General of Trade Remedies functions under the Ministry of Commerce and Industry.
• Penicillin G is also known as benzylpenicillin.
• The World Trade Organization’s Anti-Dumping Agreement sets rules for investigating and applying anti-dumping measures.
• The DGTR investigates and recommends anti-dumping duties, while the Ministry of Finance makes the final decision on their imposition.

The investigation covers imports entering India during the period from 1 April 2025 to 31 March 2026. The DGTR’s initiation of a probe does not itself impose an anti-dumping duty.