West Asia tensions push up pharma raw material prices, impact India’s drug industry

Rising tensions between Israel and Iran in West Asia are beginning to affect India’s pharmaceutical sector, with industry experts warning that disruptions in global supply chains could lead to higher medicine prices.

The situation intensified following military strikes involving United States and Israel, triggering instability in global trade routes and affecting the supply of raw materials used in drug manufacturing.

According to industry sources, prices of key pharmaceutical inputs such as Key Starting Materials (KSM) and Active Pharmaceutical Ingredients (API) have increased by between 5% and 100% over the past week.

Experts said the rise is driven by global uncertainty and fluctuations in the value of the US dollar, which has made imports more expensive. Raw materials for the pharmaceutical industry are largely traded in dollars, meaning a stronger currency significantly increases procurement costs.

In addition, the conflict has disrupted major maritime routes, delaying shipments of containers and cargo vessels and pushing logistics costs up by around 20 to 25%.

India depends heavily on imports of pharmaceutical ingredients, sourcing about 65 to 70% of its APIs and intermediates from China. With global transport routes facing disruptions, these supplies are now under strain.

Industry leaders have warned that if the conflict continues for an extended period, the country could face shortages of certain essential medicines.

While smaller traders and suppliers currently hold some stock, reports suggest that many are raising prices in response to the situation, and some suppliers have temporarily stopped accepting new orders.

Experts say that if supply disruptions persist, the cost of commonly used medicines for ailments such as fever and cold, as well as drugs for serious illnesses, could increase for consumers in the coming weeks.