- Political unrest in Bangladesh is disrupting India’s pharmaceutical exports and medical tourism sector.
- Indian pharmaceutical companies face blocked payments, missing shipments, and financial stability concerns.
- Despite earlier export growth, shipments to Bangladesh slowed down in June due to the unrest.
According to a report by News18, the political unrest in Bangladesh, which began last month, is causing significant disruptions to India’s pharmaceutical industry and medical tourism sector.
Pharmaceutical companies are struggling with issues like blocked payments and missing shipments. India’s medical tourism has also been affected, with patients from Bangladesh either canceling their trips or unable to travel due to the current situation in the neighboring country.
As per the Pharmaceuticals Export Promotion Council of India (Pharmexcil), under the Ministry of Commerce and Industry, Indian companies are now reluctant to supply products to Bangladesh due to unpaid dues and worries about financial stability.
“Due to the political unrest in Bangladesh, the Indian Pharmaceutical industry — which is into export of drugs and intermediates — has been facing significant challenges, including unpaid dues, concerns about the financial stability and logistics issues,” Raja Bhanu, Director General of Pharmexcil, told News18.
Bhanu also noted that shared borders create major logistical problems, with shipments getting stuck and insurance difficulties. However, he mentioned that conditions are now slightly improving.
Bangladesh sources 30 percent of its pharmaceutical ingredients from India, relying on both large and small to medium-sized pharmaceutical firms. And government data indicates that exports to Bangladesh varied during the 2024-25 financial year, with a decline in June. After a 42.48 percent increase from April to May, exports grew only 5.66 percent in June, showing a slowdown despite previous gains.
Edited by Harshajit Sarmah
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