Indian pharma companies & healthcare providers keep close watch on Bangladesh crisis as trade delays evident

The Bangladesh crisis, which erupted all of a sudden, will definitely impact various sectors, including the pharmaceutical industry and healthcare providers in India. Trade delays and disruptions in the supply chain could possibly have a rippling effect.
For Indian pharma, Bangladesh is an important market for their products. India exports 30 per cent of the total active pharmaceutical ingredients (APIs) and other related raw materials to Bangladesh. Any crisis that affects trade could lead to delays in supply, increased costs, or even interruptions in medication availability.
Healthcare providers from Apollo to HCG, Narayana Health, Manipal, Aster, Mendanta, to name a few, see a huge influx of patients accessing for surgical interventions in cardiac, neurology, cancer among others. The ongoing situation could pose challenges in patient care.
Industry observers note that having a broader perspective is crucial for Indian pharma, especially during this situation. Bangladesh as an LDC (Least Developing Country) member of the South Asia Free Trade Agreement (SAFTA), enjoys duty free quota access for most of its items including pharmaceuticals into the Indian market which it would lose after 2026.
Archana Dubey, EVP, international sales, Bal Pharma, stated, “Bangladesh has set up a new API (active pharmaceutical ingredient ) Park near Dhaka and Indian pharma viewed it as a platform to strengthen business tie-ups. The APIs that are in demand in Bangladesh are anti-psychiatric, antibiotics, anti-histamines, antacids and proton inhibitors. So we do envisage increase in exports for these. Yet this temporary setback raises concerns about the potential impact on India across industries including pharma.
According to Jatish N Sheth, secretary general Confederation Of Indian Pharmaceutical Industry (CIPI) and vice chairman, Karnataka Drugs and Pharmaceutical Manufacturers Association (KDPMA), there are bound to be interruptions. Indian pharma still needs to keep a close watch and be ready with its supplies of APIs which is a substantial component of imports from that country. Also China has been a major provider of APIs and excipients. Now India needs to propel its pace to quickly adjust their supply chain strategies, or even looking into stockpiling essential medicines to help Bangladesh mitigate the impact.
Kaushik Desai, pharma consultant, noted that it is no doubt a wait and watch situation. Bangladesh has to depend on India for a lot many products because it is not that economically strong. Compared to China, India is logistically in a far better situation because of ease of accessibility. But India must buck up to grab the moment for API supplies and other medicines, if needed.
All said, for Bangladesh India is a major partner. There are long-term agreements in place and therefore they have to honour that. Bangladesh’s geographic proximity to India makes it a natural trade partner. The convenience of transportation plays a significant role in fostering trade relationships. India’s extensive infrastructure network, including ports, railways, and highways, can facilitate smoother and cost-effective trade routes for Bangladesh during this crisis, added Desai.
As per an information in the public domain, the Free Trade Agreement (FTA) discussions between Bangladesh and India initiated in October last year if implemented, could significantly increase trade volumes between the two nations.
Even as strong bilateral trade relationships are mutually beneficial, supporting economic growth for both countries, with the unexpected crisis, India is apprehensive about compounded delays be it in supply chain interruptions or payment receivables.
Source: Pharmabiz