India's pharmaceutical exports experienced a significant decline of 23.17% in March, the largest drop in five years, primarily due to disruptions caused by the ongoing conflict in West Asia. This conflict has severely affected shipping routes and air transit hubs, leading to increased freight costs and logistical challenges. Industry experts estimate that the disruption could cost the sector between ₹2,500 crore and ₹5,000 crore (approximately $300 million to $500 million USD). Prior to this slump, the pharmaceutical sector had shown robust growth, with exports rising 5.6% year-on-year to $28.29 billion in the first 11 months of FY26. The industry was on track for a strong fiscal year, but the war's escalation in March disrupted the flow of essential drugs, particularly those requiring cold-chain logistics. Key transit points such as Dubai, Abu Dhabi, and Doha faced operational challenges, forcing exporters to reroute shipments through land routes, which further complicated logistics and increased costs.