2025-09-24

The pharmaceutical industry plays a crucial role in global healthcare, and India has established itself as one of the largest producers of medicines worldwide. However, the effectiveness of this industry does not solely depend on manufacturing but equally on the efficiency and resilience of its supply chain. Recent global disruptions, particularly during the COVID-19 pandemic, exposed vulnerabilities in India’s pharma logistics network and highlighted the urgent need for innovation, localisation, and sustainability.

One of the major challenges faced by the Indian pharma supply chain is its dependence on imported Active Pharmaceutical Ingredients (APIs), especially from China. Nearly 70 per cent of India’s API requirements are met through imports, which creates risks when global trade routes are disrupted. To address this, the Indian government has launched initiatives such as the Production Linked Incentive (PLI) scheme to encourage domestic API manufacturing and reduce reliance on imports.

Cold chain management presents another significant challenge, particularly for vaccines, biologics, and other temperature-sensitive medicines. The pandemic underscored the importance of robust cold chain infrastructure, which includes refrigerated transport, monitoring systems, and last-mile delivery. Companies are now increasingly investing in technology-driven solutions, such as real-time temperature monitoring and predictive analytics, to prevent spoilage and ensure quality.

Digital transformation is also reshaping pharma logistics. Tools like blockchain, IoT, and AI are being adopted to improve supply chain visibility and traceability. Blockchain, for instance, enables secure tracking of medicines from manufacturer to patient, reducing the risk of counterfeit drugs entering the market. AI and predictive analytics can forecast demand more accurately, helping companies avoid stockouts and overproduction. IoT-enabled sensors allow real-time monitoring of shipments, ensuring transparency and reliability.

Sustainability has become another priority. Pharma companies are exploring green logistics by optimising transportation routes, reducing packaging waste, and switching to eco-friendly materials. This shift not only reduces environmental impact but also improves efficiency and long-term cost savings.

Regulatory compliance remains a constant factor shaping the pharma supply chain. Meeting both domestic and international quality standards is vital for maintaining trust in Indian exports, which serve over 200 countries. Aligning with Good Distribution Practices (GDP) and evolving global regulations ensures smooth market access and strengthens India’s reputation as the “pharmacy of the world.”

Looking ahead, building a resilient pharma supply chain in India requires collaboration between government, industry, and technology providers. Investments in localisation, infrastructure, and digital innovation will be critical. By combining resilience with efficiency and sustainability, India has the potential to set new benchmarks in global pharma logistics and reinforce its leadership in healthcare delivery.