- India’s role as a major global pharmaceutical supplier is being tested by West Asia instability, which is disrupting airfreight corridors and raising the stakes for time-sensitive, temperature-controlled medicine flows across more than 200 export markets.
- The sector is shifting decisively from cost efficiency to supply chain resilience, with exporters and logistics providers diversifying routing options, decentralising inventory and prioritising delivery reliability over transport cost, particularly for high-value and temperature-sensitive pharma cargo.
- Hyderabad is consolidating as a critical pharma export and cold-chain hub, supported by expanding infrastructure and air cargo capability, while India strengthens its position through improved logistics systems even as competition from other emerging producers and ongoing infrastructure gaps persist.
India has long established itself as a pivotal player in the global pharmaceutical industry, often coined the “pharmacy of the world” due to its vast production capacity and ability to manufacture affordable generic medicines. West Asia geopolitical tensions, alongside broader global economic pressures, are now beginning to affect its position as a pharma export hub, particularly through disruptions in air cargo flows and evolving export strategies.
Airlines operating across key east–west trade lanes have been forced to reroute aircraft, extend flight times and absorb higher fuel costs. For pharmaceuticals, these disruptions are more than logistical friction; delays have direct implications for healthcare supply chains serving millions worldwide. For India, which supplies medicines to more than 200 countries and is among the largest producers of generic pharmaceuticals, the situation is exposing both strengths and vulnerabilities in global healthcare logistics.
India accounts for approximately 20 per cent of the global supply of generic medicines in terms of volume, according to the Indian Brand Equity Foundation. Its scale has been reinforced by the Covid-19 pandemic, during which it supplied vaccines and essential medicines globally, supported by a large skilled workforce, manufacturing capacity and policy backing aimed at strengthening export competitiveness.
From efficiency to resilience
Industry executives increasingly believe the disruption reflects a structural shift in supply chain design.
“The challenge today is no longer production capacity; it is the safe and reliable movement of medicines through increasingly volatile trade corridors. What we are witnessing is a shift from efficiency-driven supply chains to resilience-driven supply chains,” Jitendra Srivastava, Chief Executive Officer of Triton Logistics and Maritime, said
That shift is prompting exporters and logistics providers to reassess routing strategies, reducing dependence on single transit gateways and increasing diversification through alternative corridors and distributed inventory positioning.
Unlike many export sectors, pharmaceutical cargo is relatively insulated from moderate increases in transport costs.
“For pharmaceutical exporters, product integrity and delivery reliability are frequently more important than transportation costs. The priority remains maintaining dependable access to international markets rather than pursuing the lowest-cost option,” V.S. Narayanan, CEO of Logik Aviation, noted.
According to Indian state IMPEX data, pharmaceuticals remain one of the fastest-growing premium cargo categories globally, driven by expanding healthcare demand, biologics, specialised therapies and temperature-controlled supply chains. For India, this strengthens both opportunity and responsibility.
Hyderabad’s emergence
Airfreight remains central to India’s pharmaceutical export infrastructure due to the sensitivity of products and strict temperature requirements. However, West Asia disruptions have increased scrutiny, security measures and delays across major cargo routes, forcing exporters to reassess logistics strategies, diversify supply chains and explore new markets.
Hyderabad has emerged as a key pharmaceutical export gateway, supported by one of the world’s largest concentrations of pharmaceutical and biotechnology manufacturing. Investments in cold-chain infrastructure, temperature-controlled handling and cargo processing capacity are strengthening its role in healthcare logistics.
Geopolitical conditions are reinforcing India’s positioning.
“Buyers today evaluate suppliers not only on price but also on continuity, resilience and the ability to deliver during challenging circumstances. India’s expanding cold-chain capabilities and improving air cargo infrastructure are helping exporters meet those expectations,” Abhishek Goyal, CEO and Executive Director of Aeroprime Group, expressed.
“In pharma, logistics is not a back office function. It is part of the treatment itself. If the supply chain fails, the medicine fails, regardless of how advanced the science behind it may be,” Ashish Asaf, CEO of SA Group India, added.
Exporters are responding by diversifying routing options, strengthening regional distribution partnerships and investing in higher-grade cold-chain systems to protect shipment integrity. While freight rates have risen and planning complexity has increased, the industry view is that these challenges are manageable and are accelerating long-term investment in infrastructure, visibility and resilience.
While India is taking proactive steps, challenges remain. Dependence on specific export markets leaves the sector exposed to regional instability, while infrastructure upgrades in logistics and cold-chain systems remain essential to sustaining export quality and reliability.
The industry also faces growing competition from emerging markets, including China and Brazil, which are expanding pharmaceutical production capacity. This introduces both competitive pressure and an incentive for India to further strengthen its capabilities.
The disruption across West Asia is testing global air cargo networks, while also highlighting which economies can maintain continuity under pressure. For India, the challenge extends beyond manufacturing strength to the ability to move medicines safely, consistently and predictably through an uncertain geopolitical environment.
As healthcare supply chains become more central to global resilience, India’s investments in cargo infrastructure, cold-chain systems and international connectivity are becoming as strategically important as its pharmaceutical production base.