Sunday, September 15, 2024 Ongoing political unrest in Bangladesh is severely impacting Indian pharmaceutical exporters and medical tourism companies. Indian pharma firms are facing significant challenges, such as delayed payments, lost shipments, and unresponsive importers. At the same time, India’s medical tourism industry is feeling the effects as patients from Bangladesh are either canceling their travel plans or are unable to travel due to the turmoil.
Supply Concerns: Indian pharmaceutical companies are now hesitant to supply products to Bangladesh. The Pharmaceuticals Export Promotion Council of India (Pharmexcil) has reported concerns over unpaid dues and the financial instability caused by the political situation. Pharmexcil Director General, Raja Bhanu, stated that the Indian pharmaceutical industry is facing logistics and payment-related issues, though there is hope for gradual improvement.
Trade Disruptions: Logistics challenges have escalated due to shared borders, causing shipment delays and insurance difficulties. Despite some mild improvements, uncertainty persists over the future impact of the political unrest on trade between the two countries. Trade Dependency: Bangladesh relies on India for 30% of its pharmaceutical ingredients, supplied by large and small Indian companies.
However, due to the unrest, some Indian firms have halted new export orders until stability returns. Impact on Medical Tourism: The political unrest in Bangladesh has also affected India’s medical tourism industry, which receives 50-60% of its footfall from Bangladeshi patients. The unrest is expected to reduce India’s medical tourism inflow by 15% this year, potentially affecting revenue for hospitals heavily dependent on these patients.
Recovery is anticipated by the end of the year, but hospitals are likely to experience financial hits in the second and third quarters of FY 2025..
