HYDERABAD: As tensions in West Asia begin to spill over, India’s pharmaceutical sector is showing early signs of strain, particularly in the availability of key intermediates and solvents, Commerce Secretary Rajesh Agarwal said on Saturday.
Addressing a press conference after Chintan Shivir, he said the conflict has started impacting exports and supply chains, adding that a clearer picture will emerge after March export data and full-year figures are released around April 15.
The commerce secretary noted that West Asia is a key market for Indian pharmaceuticals, accounting for around 12–13% of the country’s pharma exports and any disruption in the region could directly impact export volumes. While the pharmaceutical industry is expected to record positive growth in the current financial year, meeting export targets may be difficult due to global uncertainties and supply chain disruptions triggered by the conflict.
“Because of the West Asia crisis, there was definitely an impact last month on both imports and exports, as energy is a major part of the Indian import market. If it goes on for long, maybe our exports to other parts of the world will also get impacted as some of the value chains will rotate back,” Rajesh added.
The commerce secretary said the government is working to ensure that the pharmaceutical supply chain is not severely affected and that essential drug supplies remain stable. “There is stress in the supply chain, and it will be difficult to take a long-term view of the situation. The impact will become clearer in the coming months as inventories get exhausted and supply disruptions continue,” he said, adding that alternative sourcing options are being explored and supplies for critical sectors such as pharmaceuticals are being prioritised.
Rajesh further explained that the government has also reduced import duties on certain items to facilitate alternative imports where domestic supply chains are disrupted. However, global trade itself is being impacted by the conflict, making sourcing more challenging.
Despite these challenges, he said the government and industry are working closely to ensure that the supply of essential medicines is not disrupted, adding that the long-term impact of the conflict will depend on its duration and the extent to which global supply chains and infrastructure are affected.