The Pharmaceuticals Export Promotion Council of India (Pharmexcil) has said that Indian pharmaceutical industry could face losses between Rs 2,500 crore and Rs 5,000 crore due to the several supply and freight movement disruptions owing to escalating conflict in the West Asia. The Gulf Cooperation Council (GCC) countries currently account for 5.58 per cent of total Indian pharmaceutical exports.

Pharmexcil Chairman Namit Joshi has stated that recent Pharmexcil data shows Indian pharmaceutical exports to the Middle East (WANA region) grew from $1,320.44 million in FY20-21 to $1,749.68 million in FY24-25. He noted that countries like UAE, Saudi Arabia, Oman, Kuwait, and Yemen are heavily dependent on Indian medicines and generic formulations. He said data also indicates significant growth in emerging markets such as Jordan, Kuwait and Libya, as well as product categories like vaccines, surgical products and AYUSH formulation. Pharmaceutical exports, particularly to GCC and West Asia-North Africa (WANA) regions, are likely to be impacted significantly amid ongoing challenges in the global freight market. He said the doubling of freight charges for both imports and exports, accompanied by surcharges of $4,000-$ 8,000 per shipment has put substantial pressure on Indian pharmaceutical companies. 

He stressed on a need for increased collaboration with government authorities to seek possible freight relief measures, such as subsidies or logistical support for pharma exporters, diversification of shipping routes and exploration of alternate logistics options to ensure the stability of pharmaceutical supply chains. Besides, he said there should be continued dialogue with international regulatory bodies to ensure that pharmaceutical products maintain timely availability in key markets despite the logistical challenges.