Namit Joshi, Chairman, Pharmexcil
“The doubling of freight charges for both imports and exports, accompanied by surcharges of $4,000–$8,000 per shipment, has put substantial pressure on Indian pharmaceutical companies,’’ Namit Joshi, Chairman, Pharmexcil said in a statement on Thursday.
Tensions in the Gulf region are creating uncertainty in critical maritime and air cargo routes essential for pharmaceutical shipments. Key routes like the Red Sea, Strait of Hormuz, and Gulf shipping corridors are facing potential risks of rerouting or delays, which may impact delivery schedules. This is particularly concerning for temperature-sensitive pharmaceutical products that could be adversely affected by these disruptions,’’ he said.
Increased collaboration
In light of these disruptions, Pharmexcil recommended increased collaboration with government authorities to seek possible freight relief measures, such as subsidies or logistical support for pharma exporters, diversification of shipping routes and exploration of alternate logistics options to ensure the stability of pharmaceutical supply chains.
Continued dialogue with international regulatory bodies should be taken up to ensure that pharmaceutical products maintain timely availability in key markets despite the logistical challenges, he said.
Currently, GCC countries account for 5.58 percent of total Indian exports. Pharmexcil data also show an upward trajectory in the total export value of Indian pharmaceutical exports to theMiddle East (WANA region)from$1,320 million in FY 2020-21to$1,749 million in FY 2024-25.
Key markets like UAE, Saudi Arabia, Oman, Kuwait, and Yemen are highly dependent on India for affordable medicinesandgeneric formulations. Pharmexcil data also indicates significant growth in emerging markets such as Jordan, Kuwait and Libya, as well as product categories like vaccines, surgical products and AYUSH formulations.
A secondary concern is the escalation of costs throughout the pharmaceutical supply chain. The major cost drivers include crude oil price fluctuations, rising logistics costs for APIs and finished formulations and shipping delays that will affect inventory cycles.
“Given the significant importance of this market for pharmaceutical products, a complete disruption of March’s exports could result in a potential loss of approximately ₹2,500 to ₹5,000 crores for the Indian pharmaceutical industry,’’ he said.
The council advised pharmaceutical industry to remain agile and proactive in navigating these challenges. Pharmexcil continues to closely monitor the situation and are actively engaging with stakeholders in the logistics and trade sectors to explore ways to mitigate the impact on pharmaceutical exports, especially in the GCC and WANA regions.
Published on March 5, 2026