Indian pharma sector immune to short-term supply disruptions, says Centre

Amid global concerns over the impact of tensions in West Asia on medical supply chains, the Central Government on Wednesday asserted that India’s pharmaceutical sector remains insulated, citing adequate domestic availability of key petrochemical feedstock.

The response came after Japan recently warned of potential disruptions to medical supplies due to constraints in petrochemical inputs such as naphtha. When asked if similar risks could affect India, the Central Government said the country produced more naphtha than it consumes and expressed confidence that the pharma industry would largely not be impacted by supply disruptions.

“India is confident about its pharmaceutical sector and it is not going to be affected,” said Sujata Sharma, Joint Secretary of the Petroleum Ministry, pointing to domestic production strength. Citing data from last year, she said the nation produced around 18 MMT naptha, of which only 11 MMT was consumed.

“Supply is not a constraint a this point, the challenge is more on the pricing side due to prevailing global conditions,” she added. Naphtha is a critical starting point, medicines depend on a broader chain of petrochemical derivatives, including solvents and intermediates, which are often part of globally linked supply networks. Disruptions in crude supplies, shipping routes such as the Strait of Hormuz, or rising input costs can still influence this ecosystem.

India’s pharmaceutical manufacturers typically maintain an inventory buffer of active pharmaceutical ingredients (APIs) for about three to six months, allowing for short-term stability in production. Beyond this period, continuity depends on steady access to both raw materials and downstream chemical inputs.