India’s pharmaceutical exports could face logistical disruptions if the conflict in the Middle East intensifies, industry officials have warned, as the sector depends heavily on time-sensitive shipping, temperature-controlled logistics and uninterrupted global trade routes.
A significant portion of India’s pharma shipments to Europe, North Africa and parts of the US East Coast move through the Red Sea–Suez Canal maritime corridor. If shipping lines continue to avoid the region and reroute vessels around the Cape of Good Hope, transit times from India to Europe could increase by 10–15 days, according to industry executives.
The extended transit period could pose risks for pharmaceutical consignments that require strict temperature control and careful shelf-life management. Products such as biologics, vaccines and certain injectable medicines are particularly sensitive. “Every additional day at sea increases exposure to temperature fluctuations and other risks,” an industry executive said.
The Middle East itself is a key market for Indian generic medicines, particularly countries such as the UAE, Saudi Arabia and Iraq. Escalating tensions in the region could slow port operations, disrupt banking channels and affect distribution networks, potentially delaying both shipments and payments.
Dinesh Dua noted that rising logistics costs are another concern for the sector. Pharmaceutical exports typically involve high-value but relatively low-volume shipments, meaning freight costs can significantly affect margins.
War-risk insurance premiums and higher container freight rates in the Gulf and Red Sea region could increase export costs for Indian manufacturers supplying Europe, West Asia and Africa. Even modest freight hikes could impact tender-based generic drug contracts, where pricing is fixed for extended periods.
Air cargo routes may also be affected. The Middle East serves as a major aviation hub linking India with Europe and North America. If airspace disruptions expand across Gulf countries, airlines may be forced to reroute flights, increasing cargo transit times and costs. This could particularly affect urgent pharmaceutical shipments such as oncology drugs, clinical trial materials and high-value active pharmaceutical ingredients (APIs), which are often transported by air.
Industry experts also warn of possible supply chain risks for raw materials. Although India is a major exporter of finished pharmaceutical formulations, it depends on imported intermediates and certain APIs from multiple regions.
Any disruption to tanker traffic through the Strait of Hormuz could push up petrochemical feedstock prices, indirectly increasing the cost of solvents, packaging materials and other chemical intermediates used in drug manufacturing.
