War can affect as much as ₹5,000 cr. of pharma exports, disrupt provide chain

Pharmaceutical exports, significantly to GCC and WANA areas, are more likely to be impacted considerably amid challenges triggered by the conflict in West Asia, the uncertainty over cargo motion being the foremost, the Pharmaceuticals Export Promotion Council of India mentioned on Thursday.

Given the significance of this market, disruption of March’s exports might lead to a possible lack of ₹2,500 to ₹5,000 crore for the Indian pharma trade, the exporters’ physique beneath the Union Commerce Ministry mentioned.

GCC international locations account for five.58% of whole Indian exports. Exports to WANA international locations rose from $1,320.44 million in 2020-21 to $1,749.68 million in 2024-25, it mentioned in an announcement.

Chairman Namit Joshi mentioned doubling of freight fees for each imports and exports, accompanied by surcharges of $4,000–$8,000 per cargo, has put substantial stress on the pharma corporations. Key routes just like the Red Sea, Strait of Hormuz and the Gulf delivery corridors are dealing with dangers of re-routing or delays, doubtlessly impacting supply schedules. It is especially regarding for temperature-sensitive merchandise.

Another fallout is the fee escalation throughout the provision chain. Crude oil worth fluctuations, rising logistics prices for energetic pharmaceutical elements (APIs) and completed formulations and delivery delays are sure to have an effect on stock cycles, he mentioned.

Pharmexcil continues to intently monitor the state of affairs and actively participating with stakeholders within the logistics and commerce sectors to discover methods to mitigate the affect on pharmaceutical exports. It is for elevated collaboration with authorities authorities to hunt potential freight reduction measures equivalent to subsidies or logistical help for pharma exporters. Diversification of delivery routes and exploration of other logistics choices to make sure stability of provide chains in addition to continued dialogue with worldwide regulatory our bodies to make sure well timed availability of the merchandise in key markets are different measures it has mooted.

The UAE, Saudi Arabia, Oman, Kuwait and Yemen are extremely depending on India for inexpensive medicines and generic formulations. Pharmexcil information additionally signifies vital progress in rising markets equivalent to Jordan, Kuwait and Libya in addition to product classes like vaccines, surgical merchandise and AYUSH formulations.