How Bangladesh unrest is disrupting Indian pharma, medical tourism
The ongoing political unrest in Bangladesh is causing significant disruptions for Indian pharmaceutical exporters and medical tourism companies. Pharma firms are grappling with issues like blocked payments, lost shipments, and unresponsive importers. Simultaneously, India's medical tourism industry is feeling the impact as patients from Bangladesh are either canceling their plans or unable to travel due to local unrest.
Indian companies hesitant to supply products to Bangladesh
The Pharmaceuticals Export Promotion Council of India (Pharmexcil), a body under the Ministry of Commerce and Industry, has reported that Indian companies are now reluctant to supply products to Bangladesh. This hesitation is due to unpaid dues and worries about financial stability amid the political turmoil. Raja Bhanu, director general of Pharmexcil, told News18 that "the Indian Pharmaceutical industry...has been facing significant challenges, including unpaid dues, concerns about financial stability and logistics issues."
Logistics and financial issues amid Bangladesh unrest
Bhanu further highlighted that logistics have become a major issue due to shared borders, with shipments getting stuck at the border and difficulties in securing insurance. However, he noted that conditions are mildly improving. "In Bangladesh, we may expect the political and economic scenario to improve. However, it is too early to make a conclusive statement on how it will affect our sector," Bhanu said.
Bangladesh's reliance on Indian pharmaceutical ingredients
Another Mumbai-based drug maker, who wished to remain anonymous, also told the channel that they have stopped accepting new export orders until normalcy returns in Bangladesh. Bangladesh relies heavily on India for its pharmaceutical needs, sourcing 30% of its pharmaceutical ingredients from the country. This demand is met by both large pharmaceutical firms and small to medium-sized companies. Government data shows that exports to Bangladesh fluctuated in the financial year 2024-25, with a decline in activity noted in June.
Unrest in Bangladesh impacts India's medical tourism
Similarly, medical tourism, which accounts for 50-60% of India's total medical tourism inflow, is also suffering due to the unrest. But the ongoing sociounrest in Bangladesh is expected to slash India's medical tourism footfall by 15% this year. Though the decline is likely to progressively recover by the end of the year, hospitals that rely heavily on Bangladeshi medical tourists may have revenue declines in the second and third quarters of FY 2025.
