The investigation has been initiated by the Directorate General of Anti-Dumping and Allied Duties (DGAD), under the Commerce Ministry, on a complaint by Amoli Organics Ltd, a major manufacturer of the product.
The DGAD has concluded that "sufficient prima facie evidence" exists to "initiate an anti circumvention investigation" of the alleged circumvention of anti-dumping duty imposed on the imports of 'Diclofenac Sodium' from China.
The authority would probe whether imports of the chemical "are at dumped prices and are causing injury to the domestic industry and the need for extending anti-dumping duty imposed on the imports", the DGAD said in a notification.
In November 2014, India had imposed anti-dumping duty of USD 2,715 per tonne on import of the chemical from China for a period of five years to save the domestic industry from cheap shipments.
India has also initiated investigations into circumvention of anti-dumping duty on imports of certain stainless steel products from China, Korea, EU, South Africa, Taiwan, Thailand and the US.
India has imposed anti-dumping duty on several products including electronics and chemicals from China.
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