How China-US Tensions Affect Indian Pharma Distribution
US-China trade tensions disrupt India’s pharma supply chain, causing API shortages and price hikes (60-70% APIs come from China). While India’s PLI scheme aims for self-reliance in 3-5 years, distributors must buffer stocks and improve supplier coordination. Long-term shifts may stabilize supplies if India becomes a global pharma alternative.
Heavy Dependence on Chinese Raw Materials
– India imports 60-70% of its Active Pharmaceutical Ingredients (APIs) from China.
– Companies we work with rely on these supplies to manufacture medicines.
– Any disruption in China (due to US trade restrictions or factory shutdowns) leads to shortages and price hikes in India.
Supply Chain Delays & Price Fluctuations
– The US-China trade war has made raw material supplies unstable.
– Many Indian pharma companies have faced production delays, affecting our distribution timelines.
– Some essential medicines saw price increases of 10-15% due to rising API costs.
Indian Government’s Push for Self-Reliance
– The Production Linked Incentive (PLI) scheme is encouraging local API manufacturing.
– The government has approved bulk drug parks to reduce dependence on China.
– However, experts say it will take 3-5 years before India becomes self-sufficient.
Impact on Distributors Like Us
– Since we don’t manufacture but distribute medicines, delays from companies mean delayed deliveries to hospitals and pharmacies.
– We need to maintain a buffer stock and communicate early with customers about possible shortages.
– Some brands may change suppliers, leading to temporary unavailability of certain medicines.
Long-Term Opportunities
– If Indian companies reduce their reliance on China, the supply chain will become more stable.
– The US is also looking at India as an alternative supplier, which could benefit our partner brands.
What Should We Do?
– Monitor stock levels closely and plan orders in advance.
– Stay in touch with manufacturers for updates on supply issues.
– Inform customers proactively if any delays are expected.
While the situation is challenging, better planning can help us manage disruptions and keep medicines available for patients.
Website Sources: Pharmabiz, Business Standard, Indian Government Pharma Reports, Economic Times, Pazago.com, India Today.
Website Link:
1.https://blog.pazago.com/post/indian-pharma-dependency-china-impact-exports
2.https://economictimes.indiatimes.com/industry/healthcare/biotech/pharmaceuticals/pharma-companies-may-feel-heat-of-us-tariffs-on-china/articleshow/120289232.cms
3.https://www.indiatoday.in/business/story/us-china-trade-war-tariff-125-percent-what-it-means-for-india-and-world-global-market-2706864-2025-04-10
4. https://www.business-standard.com/economy/news/us-pharma-tariffs-would-raise-us-drug-costs-by-51-bn-annually-report-125042501310_1.html
5.https://www.pharmabiz.com/NewsDetails.aspx?aid=177591&sid=1
