West Asia Conflict Threatens India's Pharma Supply Chain as API Costs Surge

New Delhi : India's pharmaceutical industry is beginning to feel the pressure from the escalating West Asia conflict, with disruptions in the import of active pharmaceutical ingredients (API) threatening to push up prices of key starting materials (KSM) across the sector. Industry veterans are raising alarm bells, warning that prolonged conflict could spell serious trouble for the country's drug manufacturing ecosystem. Vinod Kalani, who advises the Confederation of Indian Pharmaceutical Industry (CIPI), expressed his concerns in a conversation with ETV Bharat on Wednesday. "The war's impact on India's pharma sector has already begun to manifest," Kalani noted. "Should hostilities stretch beyond 10 to 15 days, we're looking at a significant crisis." The numbers paint a stark picture of India's pharmaceutical dependencies. Data released by the Ministry of Chemicals and Fertilisers reveals that during the 2024-25 period, India brought in 200 different categories of APIs, bulk drugs, and drug intermediates valued at roughly US$ 4.35 billion. These imports originated from more than ten nations worldwide. The most striking aspect of this trade flow is China's overwhelming dominance, accounting for nearly three-quarters—73.7 per cent to be precise—of all these imports. The ministry has identified several critical vulnerabilities in this import-heavy model. These include dependence on single-source suppliers, unpredictable price swings, and the risk of predatory pricing tactics. "These single-source dependencies pose a direct threat to our self-sufficiency and