- India's medical devices and pharma sectors import a large share of raw materials
- Gradual rise in prices for healthcare consumables and certain medicines if cost increases are passed on
- Industry is absorbing high costs now, but extended volatility will translate into steeper prices for patients
Like almost every other sector, India's healthcare sector is also beginning to feel the indirect impacts of the ongoing war in Iran. While routine medical services have not yet seen sharp disruptions, industry insiders warn that prolonged conflict is tightening supply chains. If shipping lanes such as the Strait of Hormuz remain disrupted for long, the crisis would reach patients' pockets in time, they added.
India's medical devices and pharma sectors import a large share of raw materials, active ingredients and specialised components, including plastics and intermediate chemicals. With critical trade routes facing delays, higher freight charges and energy volatility, the cost base for healthcare companies is increasing. Manufacturers of items such as syringes, gloves, catheters and other consumables are already reporting longer lead times and elevated costs, even if outright shortages remain limited. FOLLOW LIVE UPDATES
'Import Reliance Pushing Up Costs'
"Right now, it's not affecting day-to-day services but the war will have an indirect pressure on the system," says Rohan Palshetkar, Consultant IVF Specialist at Bloom IVF. "As we currently rely on importing raw materials, medical devices and certain high-end equipment, costs for procurement could increase." He adds that patient bills haven't risen so far because of the existing stock buffers, "but if this persists, there could be an increase in costs which would directly affect patients."
Echoing Palshetkar, Jeevan Kasara, Chairman, Steris Healthcare, said, "The impact on the healthcare ecosystem will be seen in the pharmaceutical industry, especially since the sector is highly dependent on the import of active pharmaceutical ingredients (APIs), intermediates, and packaging materials that are petrochemical derived. A prolonged disruption will increase the price of medicine.
According to Prashant Krishnan, CEO of TI Medical, geopolitical tensions are "creating significant pressure on global healthcare supply chains. ... Disruptions in key trade routes and rising energy costs are increasing input and transportation expenses." In some cases, he says, prices of critical materials like medical-grade plastics have spiked by as much as 50 per cent, with packaging and fuel costs also up. While companies are trying to shield patients now, "selective price adjustments may occur" where import dependence is high.
Nutraceuticals, Medical Tourism Also Feel The Pinch
Conflict-related disruptions are cropping up in less obvious corners too. Suresh Garg, CMD of Zeon LifeSciences, says tensions "are starting to show up in places we didn't immediately expect - like the nutraceutical and healthcare supply chain." Shipments are delayed or disrupted, input and packaging costs are rising, and demand hasn't fallen. This mismatch stretches production timelines and, over time, could mean higher prices or fewer options on shelves.
In a similar vein, Aman Puri, Founder of Steadfast Nutrition, points out that raw materials for supplements have ballooned - in some cases by about 250 per cent - due to global supply chain disruptions. "Packaging costs, linked to oil prices, have also climbed. While India doesn't yet face medicine shortages thanks to strong domestic stocks of essentials, a slow build-up of raw material scarcity is underway that could affect production of in-demand drugs like paracetamol, amoxicillin and metformin," said Puri.
The conflict is also influencing patient behaviour. Rajeev Taneja, Founder of GlobalCare Health, explains that in medical tourism, treatment journeys are often planned well ahead, so uncertainty around regional stability leads patients to delay travel even if demand hasn't dropped. Many continue consultations virtually while waiting for safer travel conditions. He notes that India's clinical expertise and accredited hospitals still inspire confidence, and patients are likely to pursue treatment once conditions stabilise.
Impact On Patients: If Iran War Drags On
- Gradual rise in prices for healthcare consumables and certain medicines if cost increases are passed on.
- Longer wait times or delivery delays for imported devices or components used in diagnostics and hospital care.
- Shifts in medical tourism and elective care as patients adjust travel plans amid travel and security concerns.
- Industry expert warn that sustained supply disruption around key shipping corridors would inevitably increase production costs. While Indian companies are absorbing some of that now, extended volatility could translate into steeper costs for patients.
