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Here’s a latest, fact-based update (March 2026) on how the ongoing US–Iran war is impacting the Indian pharmaceutical industry:
1. 🔺 Sharp rise in raw material & production costs
Pharma depends heavily on petrochemical-based inputs (solvents, APIs, packaging).
Due to oil price surge (above $100/barrel), costs have jumped significantly. �
Source👉 (The Economic Times)
Example increases:
Paracetamol raw material: ₹235 → ₹470/kg
Omeprazole: ₹300 → ₹650/kg �
Source👉 (The Times of India)
👉 Reason: crude oil + petrochemical supply disruption.
2. 📦 Supply chain disruption (major concern)
Closure/disruption of Strait of Hormuz is affecting shipping routes.
Many pharma inputs (chemicals, intermediates) are delayed or costlier.
Industry bodies warn of:
Shortages of APIs
Risk to medicines like antibiotics, diabetes & heart drugs �
Source👉 (The New Indian Express)
3. 💊 Medicine prices likely to increase
Packaging (plastic, aluminium) and transport costs are rising.
Common drugs may be affected:
Paracetamol
Metformin
Amoxicillin �
Source👉 (India Today)
👉 Current status:
Prices not fully increased yet
But upward pressure is building
4. 🚢 Export losses & logistics issues
Indian pharma exports may face:
$ 300–500 million loss if conflict continues �
Source👉 (The Economic Times)
Problems:
Higher freight cost
Ships avoiding Gulf routes
Delays in deliveries
5. ⚡ Energy crisis indirectly hitting pharma
LPG & fuel shortages affecting manufacturing operations in India �
Source👉 (The Guardian)
Pharma plants rely on:
Gas-based energy
Continuous production cycles
👉 Result: reduced efficiency + higher operating cost
6. 📉 Overall industry outlook (short-term)
Negative in short term
Rising costs
Supply chain uncertainty
Export disruption
But not a collapse
India has strong domestic production capacity
Current medicine stock still stable
📊 Simple Summary
Factor
Impact on Pharma
Oil prices ↑
Cost of drugs ↑
Supply chain disruption
API shortages risk
Logistics issues
Export decline
Packaging cost ↑
Medicine price pressure
Energy crisis
Manufacturing affected
🧠 Expert Insight (Key takeaway)
The biggest risk is not demand, but input cost + supply chain disruption.
If the war continues: 👉 Medicine prices in India will likely rise
👉 Export growth may slow temporarily