The ongoing conflict in West Asia is significantly impacting Indian micro, small, and medium enterprises (MSMEs) in the pharmaceutical sector, with projections indicating a 3-5% decline in profitability and a 12-15% increase in working capital requirements. Haresh Calcuttawala, CEO of Trezix, noted that MSMEs will need to allocate more funds to maintain their operations amidst rising costs for raw materials, freight, and energy. The prices of active pharmaceutical ingredients (APIs) and other critical materials have reportedly increased by as much as 200%. Additionally, freight rates for container shipments to West Asia have surged due to rerouting and increased war-risk insurance premiums. While larger pharmaceutical firms have stockpiled supplies, MSMEs typically have lower inventory buffers, making them more vulnerable to supply chain disruptions. The Department of Pharmaceuticals is actively seeking support to secure essential feedstocks, as shortages could lead to production halts for critical medications. Although there is no immediate nationwide medicine shortage, the pressure on MSMEs could lead to difficulties in maintaining stable pricing and supply commitments.