The Pharmaceutical Export Promotion Council of India mentioned on Thursday that amid the challenges brought on by the wars in West Asia, pharmaceutical exports, particularly to the GCC and WANA areas, are prone to be considerably affected, with the best uncertainty surrounding cargo motion.
Given the significance of this market, suspension of exports in March may price India’s pharmaceutical trade between Rs 2,500 crore and Rs 5,000 crore, the exporters physique underneath the Union Ministry of Commerce mentioned.
GCC international locations account for five.58% of India’s whole exports. In keeping with the assertion, exports to WANA international locations elevated from $1,320.44 million in 2020-21 to $1,749.68 million in 2024-25.
Chairman Namit Joshi mentioned the doubling of freight charges for each import and export and extra expenses of $4,000 to $8,000 per cargo are placing enormous stress on pharmaceutical corporations. Key routes such because the Purple Sea, Strait of Hormuz and Gulf routes face the danger of rerouting and delays, which may impression supply schedules. Explicit care have to be taken with temperature-sensitive merchandise.
One other impression is rising prices throughout the provision chain. He mentioned fluctuations in oil costs, elevated logistics prices for energetic pharmaceutical components (APIs) and completed drug merchandise, and delivery delays are certain to impression stock cycles.
Pharmexcil will proceed to intently monitor the state of affairs and actively have interaction with stakeholders within the logistics and commerce sectors to discover methods to cut back the impression on pharmaceutical exports. That is to strengthen cooperation with authorities authorities and discover attainable cargo aid measures comparable to subsidies and logistics assist for pharmaceutical exporters. Diversifying transportation routes and exploring various logistics choices to make sure provide chain stability, and continued dialogue with worldwide regulatory our bodies to make sure well timed availability of merchandise in key markets are different measures being thought of by the corporate.
The UAE, Saudi Arabia, Oman, Kuwait and Yemen rely closely on India for inexpensive and generic medicines. Pharmexcil’s information additionally exhibits vital progress in rising markets comparable to Jordan, Kuwait and Libya, in addition to product classes comparable to vaccines, surgical merchandise and AYUSH formulations.
