The Directorate General of Trade Remedies (DGTR), under the federal trade ministry, said it initiated the probe following an application by Paushak that alleged that imports from China had caused “material injury” to domestic producers.
The Chinese embassy in New Delhi did not immediately respond to a request for comment.
In December, India imposed a three-year import tariff of 11% to 13% on some steel imports, in an effort to curb cheap Chinese products.
Ethyl chloroformate is an organic chemical intermediate widely used in pharmaceutical and agrochemical manufacturing.
The probe could lead to import duties, higher costs for drugmakers and agrochemical firms while shielding local producers if dumping is confirmed, trade analysts said.
In a statement, the DGTR said it would examine whether the product was being dumped on the Indian market and whether anti-dumping duties were warranted to offset the alleged injury to domestic producers. In its filing, Paushak said it is India’s sole domestic producer of ethyl chloroformate and it is responsible for the country’s entire output. It alleged that rising imports from China had led to price suppression and weakened profitability.
The DGTR said its preliminary assessment indicated the dumping margin appeared to be above the de minimis level, suggesting significant price undercutting by Chinese exporters.
The investigation will cover the period from October 2024 to September 2025, the DGTR said, and will assess evidence from exporters, importers and other interested parties before deciding whether to recommend duties to the government.
In a separate case, the DGTR also initiated an anti-dumping investigation into imports of hexamine – another intermediate used by the chemical and pharmaceutical industries – originating in or exported from China, Russia and the United Arab Emirates.