India Reviews Extension Of Pharma Input Duty Exemptions Amid West Asia Tensions

India's pharmaceutical exports touched more than $31 billion in FY2026, even as the government stepped in earlier this year with temporary duty relief to keep supply chains running during the West Asia crisis. With those exemptions due to end on 30 June, officials are now considering whether they should stay in place for longer.

The relief measures, introduced in April, covered 40 petrochemical products used across sectors such as pharmaceuticals, plastics and packaging. The move was aimed at preventing shortages and cushioning industries from rising input costs triggered by geopolitical tensions.

Could The Duty Exemptions Be Extended?

Ravi Teja, Deputy Director in the Department of Commerce, said the government is closely tracking developments in West Asia before taking a call.

He added that the final decision would depend on whether officials believe continued support is necessary.

India had waived import duties on select chemicals and solvents that are used in pharmaceutical manufacturing. The government also introduced steps to ease the impact of higher freight and insurance costs faced by businesses importing these materials.

Why Does This Matter For Pharma?

Although concerns over supply disruptions surfaced after the conflict involving Iran escalated, officials said the effect on India's pharmaceutical exports has been limited so far.

India is the world's third-largest producer of medicines by volume and accounts for around 20% of global generic drug supplies. More than 60% of its exports go to tightly regulated overseas markets.

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What Is The Long-Term Plan?

Teja said India's future growth will depend not only on generic medicines but also on products such as biosimilars, biologics, vaccines, speciality drugs and medical devices.

The country is aiming to raise pharmaceutical exports to $50 billion by 2030 by strengthening quality standards, diversifying markets and building a more resilient supply chain.

Sources:

The Hindu

Reuters