India pharma exports drop over 23% amid West Asia conflict
India's pharma exports dropped by over 23% in March 2026, the steepest fall in five years.
The main reason? Ongoing conflict in West Asia has thrown supply chains out of gear and pushed shipping costs way up, with estimated losses between ₹2,500 crore and ₹5,000 crore just for March.
Rerouting adds $3,500-$8,000 to shipments
Even though exports were up for most of the year ($28.29 billion in the first 11 months of FY26), this sudden dip is worrying.
Key transit hubs like Dubai and Abu Dhabi faced missile threats, so shipments had to be rerouted through places like Jeddah and Riyadh, making deliveries slower and pricier.
Shipping a single order now costs $3,500 to $8,000 extra, and even container costs for active pharmaceutical ingredients sourced from China are costing double.
All this means India's medicines are taking longer (and costing more) to reach the world right now.