Gulf Tensions & Freight Surge May Hit India’s Pharmaceutical Exports: Pharmexcil

New Delhi, Mar 6 (KNN) Rising freight costs and geopolitical tensions are likely to impact Indian pharmaceutical exports to the Gulf and West Asia–North Africa (WANA) regions, according to the Pharmaceuticals Export Promotion Council of India (Pharmexcil).

Namit Joshi, Chairman, Pharmexcil, said, “The doubling of freight charges for both imports and exports, accompanied by surcharges of USD 4,000–USD 8,000 per shipment, has put substantial pressure on Indian pharmaceutical companies,’’ BL reported.

Shipping Routes Face Uncertainty

Joshi said tensions in the Gulf region are creating uncertainty in key maritime and air cargo routes used for pharmaceutical shipments. Major routes such as the Red Sea, Strait of Hormuz and Gulf shipping corridors face risks of rerouting or delays.

Such disruptions could affect delivery schedules, particularly for temperature-sensitive pharmaceutical products that require strict handling conditions.

Key Export Markets at Risk

According to Pharmexcil, GCC countries account for about 5.58 per cent of India’s total exports. The value of pharmaceutical exports to the West Asia–North Africa region rose from USD 1.32 billion in FY2020–21 to USD 1.75 billion in FY2024–25.

Countries including the United Arab Emirates, Saudi Arabia, Oman, Kuwait and Yemen depend heavily on India for affordable medicines and generic formulations. Emerging markets such as Jordan and Libya are also seeing growing demand, particularly for vaccines, surgical products and AYUSH formulations.

Industry Flags Cost Pressures

Pharmexcil also highlighted rising costs across the pharmaceutical supply chain, driven by fluctuations in crude oil prices, higher logistics costs for active pharmaceutical ingredients and finished formulations, and shipping delays affecting inventory cycles.

Joshi warned, “Given the significant importance of this market for pharmaceutical products, a complete disruption of March’s exports could result in a potential loss of approximately Rs 2,500-5,000 crores for the Indian pharmaceutical industry.’’

Call for Policy Support

The council has recommended closer coordination with government authorities to explore freight relief measures, including subsidies or logistical support for exporters. It also advised diversifying shipping routes and exploring alternative logistics options to maintain supply chain stability.

Pharmexcil said it is closely monitoring the situation and engaging with logistics and trade stakeholders to minimise the impact on pharmaceutical exports, particularly to the GCC and WANA regions.

(KNN Bureau)