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India Pharma Faces Rs 5,000 Cr Loss Amid Shipping Crisis
6 Mar
Summary
- Middle East tensions have doubled freight costs for Indian pharma.
- Indian pharmaceutical industry could lose up to Rs 5,000 crore.
- GCC countries rely heavily on India for affordable medicines.
The Indian pharmaceutical industry is confronting substantial financial repercussions, with potential losses ranging from Rs 2,500 crore to Rs 5,000 crore, attributed to disruptions in Middle East shipping routes. Freight charges have doubled, significantly impacting the cost of both importing raw materials and exporting finished products. This situation poses a considerable threat to India's pharmaceutical exports, especially to vital markets within the Gulf Cooperation Council (GCC) countries and the wider Middle East.
These regions, including the UAE and Saudi Arabia, are heavily reliant on India for essential medicines and generic formulations. Pharmexcil Chairman Namit Joshi has highlighted that a complete disruption of March's exports could result in the aforementioned financial losses. The industry is calling for collaborative efforts with government authorities to explore freight relief measures, such as subsidies or logistical support, to mitigate these economic impacts and ensure the stability of the pharmaceutical supply chain.
