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The Directorate General of Trade Remedies (DGTR) is set to hold an oral hearing on March 13, 2025, regarding the imposition of anti-dumping duties on aniline imports from China. This hearing marks a crucial phase in the sunset review of an ongoing investigation into unfairly priced Chinese aniline, which domestic manufacturers argue is crippling local production and endangering key pharmaceutical supply chains.
Aniline, a fundamental organic chemical, is an essential raw material in the pharmaceutical sector, particularly in the production of widely used drugs such as paracetamol, tylenol, and acetaminophen. The domestic applicant, Gujarat Narmada Valley Fertilizers and Chemicals Limited (GNFC), has asserted that the influx of under priced Chinese aniline has caused substantial material injury to the Indian industry, warranting immediate government intervention.
Aniline serves as a critical building block in drug formulation, and any disruption in its availability or pricing can have a cascading effect on medicine production. With India being one of the world's largest producers of generic medicines, safeguarding the domestic supply of this chemical is vital for ensuring stable drug prices and securing the nation’s pharmaceutical self-reliance.
The applicant has raised concerns that without protective measures, Indian manufacturers will struggle to compete, potentially leading to dependency on Chinese suppliers for this key input. If the DGTR upholds the complaint, it could lead to the imposition of anti-dumping duties, effectively curbing the inflow of cheap imports and ensuring fair competition.
As per the complaint filed by GNFC, China should be classified as a non-market economy, implying that its domestic prices and costs are unreliable indicators of fair value. The applicant has invoked Article 15(a)(i) of China’s Accession Protocol, urging Chinese producers to prove that market economy conditions exist in their industry. This classification, if upheld, would allow Indian regulators to assess the true cost of aniline imports based on alternative methodologies, potentially strengthening the case for anti-dumping duties.
The DGTR initiated the sunset review on September 24, 2024, following claims that continued dumping of aniline from China threatens the stability of the Indian industry. The upcoming oral hearing will provide stakeholders an opportunity to present their arguments, after which the DGTR will decide whether to recommend the imposition of duties.
The hearing, set to take place in a hybrid mode—both physically at the DGTR’s conference room and via Digital Video Conferencing (DVC)—will include testimonies from affected parties. Registered stakeholders will receive links and further details via email.
If the DGTR rules in favour of the domestic industry, the Indian government may impose fresh anti-dumping duties, reinforcing its commitment to protecting key industries from unfair trade practices. This decision will not only shape the future of India’s Aniline market but also send a strong message on trade policy amid global supply chain challenges.
The outcome of this case holds significant implications for India's pharmaceutical and chemical sectors. With the Make in India initiative emphasizing domestic manufacturing, a favourable ruling could be a turning point in reducing dependency on China for crucial pharmaceutical ingredients. The coming weeks will determine whether India takes a firm stand against dumping or continues to grapple with the economic pressures of global trade.
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