India’s pharmaceutical exports could face logistical disruptions if the Middle East conflict widens, as the sector depends heavily on time-sensitive shipping, temperature-controlled logistics and smooth trade routes, people in the industry told ET.
A major share of Indian pharma exports to Europe, North Africa and parts of the US East Coast move through the maritime corridor linking the Red Sea with the Suez Canal. If shipping lines continue to avoid that route and divert vessels around the Cape of Good Hope, transit times from India to Europe could extend by 10–15 days, an executive said.
The "extended time span" for pharmaceutical products will create complications as many consignments require strict temperature control and shelf-life management. "This requirement is more with biologics, vaccines and certain injectables. Every additional day at sea is an additional day of risk exposure, he added.
The Middle East itself is a significant destination for Indian generic medicines, especially markets such as United Arab Emirates, Saudi Arabia and Iraq. The escalating conflict could therefore slow port operations, banking channels, and distribution networks in those markets, delaying payments and shipments,” said Dinesh Dua former chairman of Pharmaceutical Export Promotion Council (Pharmexcil).
For the industry, freight costs are another area of concern.
“Pharma exports typically rely on high-value but relatively low-volume shipments meaning logistics costs can significantly affect margins. War-risk insurance and higher container freight rates in the Gulf and Red Sea region would increase export costs for Indian manufacturers supplying Europe, West Asia and Africa. Even a modest freight increase can affect tender-based generic drug contracts where pricing is tightly fixed for long periods,” Dua said.
Air cargo is also vulnerable because the Middle East is the principal aviation bridge between India and Western markets.
“If airspace disruptions spread across Gulf countries, airlines may reroute flights, increasing cargo transit times and costs. This matters particularly for urgent pharmaceutical shipments such as oncology drugs, clinical trial materials, and high-value APIs that are often shipped by air, an expert said.
Also Read | India’s $98 billion imports in hot water as West Asia tensions heat up
The conflict could result in logistical risk in the supply chain for raw materials. While India is a major exporter of finished formulations, it depends on imported intermediates and some active pharmaceutical ingredients from multiple regions.
Any disruption to tanker traffic through the Strait of Hormuz could push up petrochemical feedstock prices, indirectly raising costs for solvents, packaging materials and certain chemical intermediates used in drug manufacturing.
A major share of Indian pharma exports to Europe, North Africa and parts of the US East Coast move through the maritime corridor linking the Red Sea with the Suez Canal. If shipping lines continue to avoid that route and divert vessels around the Cape of Good Hope, transit times from India to Europe could extend by 10–15 days, an executive said.
The "extended time span" for pharmaceutical products will create complications as many consignments require strict temperature control and shelf-life management. "This requirement is more with biologics, vaccines and certain injectables. Every additional day at sea is an additional day of risk exposure, he added.
The Middle East itself is a significant destination for Indian generic medicines, especially markets such as United Arab Emirates, Saudi Arabia and Iraq. The escalating conflict could therefore slow port operations, banking channels, and distribution networks in those markets, delaying payments and shipments,” said Dinesh Dua former chairman of Pharmaceutical Export Promotion Council (Pharmexcil).
For the industry, freight costs are another area of concern.
“Pharma exports typically rely on high-value but relatively low-volume shipments meaning logistics costs can significantly affect margins. War-risk insurance and higher container freight rates in the Gulf and Red Sea region would increase export costs for Indian manufacturers supplying Europe, West Asia and Africa. Even a modest freight increase can affect tender-based generic drug contracts where pricing is tightly fixed for long periods,” Dua said.
Air cargo is also vulnerable because the Middle East is the principal aviation bridge between India and Western markets.
“If airspace disruptions spread across Gulf countries, airlines may reroute flights, increasing cargo transit times and costs. This matters particularly for urgent pharmaceutical shipments such as oncology drugs, clinical trial materials, and high-value APIs that are often shipped by air, an expert said.
Also Read | India’s $98 billion imports in hot water as West Asia tensions heat up
The conflict could result in logistical risk in the supply chain for raw materials. While India is a major exporter of finished formulations, it depends on imported intermediates and some active pharmaceutical ingredients from multiple regions.
Any disruption to tanker traffic through the Strait of Hormuz could push up petrochemical feedstock prices, indirectly raising costs for solvents, packaging materials and certain chemical intermediates used in drug manufacturing.
