As West Asia conflict rages on, India’s pharma exports stare at Rs 5K crore potential losses – The Times of India

Hyderabad: India’s pharmaceutical sector is staring at potential losses of Rs 2,500– Rs 5,000 crore if March exports to the Gulf Cooperation Council (GCC) and the broader West Asia and North Africa (WANA) are utterly disrupted by the continued West Asia conflict, which is intensifying strain on freight, delivery routes, and supply schedules, in keeping with the Prescription drugs Export Promotion Council of India (Pharmexcil).GCC nations at the moment account for five.58% of India’s complete exports, with pharma a rising part of that commerce. As per current business knowledge, Indian pharmaceutical exports to the WANA area rose from $1,320.44 million in FY 2020-21 to $1,749.68 million in FY 2024-25.

Nations such because the UAE, Saudi Arabia, Oman, Kuwait, and Yemen rely closely on India for value-efficient medicines, whilst momentum grew in rising markets equivalent to Jordan, Kuwait, and Libya, with growing demand for vaccines, surgical merchandise, and AYUSH formulations. Nonetheless, this progress is now at threat as a result of ongoing challenges within the world freight market.Pharmexcil Chairman Namit Joshi mentioned tensions in West Asia affected crucial maritime and air cargo corridors. Key routes such because the Purple Sea, Strait of Hormuz, and Gulf delivery corridors are going through heightened dangers of rerouting or delays, threatening supply schedules. It is a concern, particularly for temperature-delicate merchandise that may be broken by extended transit or chilly-chain disruptions.In keeping with Pharmexcil, the conflict already put appreciable pressure on the worldwide freight market, with freight costs for each imports and exports doubling in some circumstances. “The doubling of freight costs for each imports and exports, accompanied by surcharges of $4,000–$8,000 per cargo, put substantial strain on Indian pharmaceutical firms,” Joshi mentioned.One other concern is escalating prices throughout the pharmaceutical provide chain, with main value drivers together with crude oil worth fluctuations, rising logistics prices for APIs and completed formulations, and delivery delays that may have an effect on stock cycles, he mentioned.Pharmexcil mentioned it’s monitoring developments and fascinating logistics and commerce stakeholders for injury management. It beneficial nearer coordination with govt authorities for doable freight aid measures, diversification of delivery routes and various logistics choices, and continued dialogue with worldwide regulators to keep up well timed availability of medicines in key markets.