India’s pharmaceutical sector saw a sharp disruption in March as geopolitical tensions in West Asia impacted key logistics routes, reversing an otherwise strong export trajectory for FY26.
Pharma exports dropped 23.17% in March, marking the steepest monthly fall in several years. This came after steady growth in the first 7 months of FY26, where exports had reached $28.29 billion, reflecting consistent global demand before the disruption.
The escalation in conflict disrupted critical transit routes through the Gulf, which serve as major hubs for shipments to Europe, North America and Africa.
Increased freight costs, route diversions and temporary shutdown of key air hubs significantly delayed time-sensitive shipments such as vaccines and specialty drugs.
Shipping costs surged sharply, with freight charges and container rates rising significantly, while exporters were forced to reroute cargo through longer and less efficient paths.
These disruptions are estimated to have caused losses ranging between ₹2,500 crore and ₹5,000 crore for the industry.
Read More: Essential Drug Prices May Rise 10–20% Temporarily Amid Supply Disruptions!
The March decline highlights the vulnerability of India’s pharma export supply chain to geopolitical risks, despite strong underlying global demand.
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Published on: Apr 18, 2026, 11:16 AM IST
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