Gulf War Disrupts Indian Pharma Exports and Medical Tourism Flow

India’s medical tourism and pharmaceutical export flows are facing sudden, serious disruption as the Gulf conflict intensifies, rattling travel, shipping and business networks that bind South Asia to West Asia.

Hospitals in Delhi, Mumbai, Chennai and other major Indian medical hubs are seeing a surge in cancelled procedures and postponed bookings from Gulf patients, as flight schedules change and insurance costs jump amid rising insecurity.

Flights to key Gulf Cooperation Council markets like the UAE, Saudi Arabia, Oman and Kuwait have been delayed or rerouted, reducing new patient traffic sharply in the past two weeks.

The shock is rippling into India’s pharma export sector too. Trade corridors through the Persian Gulf and the Strait of Hormuz — vital for India’s drug shipments — are now under pressure from war-related stoppages and rerouting, forcing carriers to take longer, costlier paths.

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Rising freight costs, forced detours via the Cape of Good Hope and hikes in war-risk insurance are squeezing margins for exporters of generic drugs, vaccines and APIs. Industry insiders warn that if the conflict persists, smaller companies could struggle to absorb the added expense, threatening India’s hard-earned price edge in global markets.

Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance on how routing delays and rising fuel and freight costs are hitting Indian drugmakers said, “We are facing a Covid pandemic kind of uncertainty. The big question is logistics and energy costs.”

Shipping delays aren’t limited to healthcare. Across sectors from basmati rice to textiles, the fallout from Gulf tensions has left exporters recalibrating plans. Nearly 60-70% of India’s basmati trade heads to the Gulf, and rising freight and insurance charges are prompting exporters to meet with government bodies to seek support and assess risks.

Sharad Kumar Saraf, Founder Chairman of Technocraft Industries India said, “We are in for big trouble now because of this war. It will have a cascading effect on India’s trade with West Asian countries.”

Back at home, disruption to flights bound for West Asia — which account for almost half of all Indian international departures — has added fresh uncertainty to tourism, business travel and family visits. As airspace restrictions persist, millions of passengers and cargo movements are threatened, pushing airlines and planners to rethink routes and schedules.

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Beyond travel and exports, the wider economic picture in India is beginning to reflect the strain. Growing energy costs from oil price spikes and potential crane in remittance flows from millions of Indian workers in the Gulf further complicate the outlook. Higher logistics costs, longer delivery times and global supply chain retooling all point to deeper, longer-lasting effects if the Gulf conflict shows no signs of easing.

For now, businesses in healthcare and pharma are trying to adapt. Hospital chains are exploring new markets in Africa and South Asia for international patients, while exporters are pushing for government help on credit lines and diplomatic support to keep trade channels open. The conflict’s spread into India’s trade networks is a reminder that geopolitical instability anywhere can hit global businesses everywhere.

Medical Tourism Data

• India received 6.44 lakh medical tourists in 2024, up from 1.82 lakh in 2020, showing strong post-pandemic recovery.
• Between January–April 2025, India recorded 1,31,856 foreign medical tourists, accounting for 4.1% of total foreign tourist arrivals during the period.
• India’s medical tourism market is valued at around USD 20.4 billion in 2026.
• The sector is projected to reach USD 65.1 billion by 2036, reflecting long-term growth potential.
• Before the recent Gulf disruption, an estimated 1,500 patients per month from GCC countries were traveling to India for treatment, especially to states like Kerala.

Pharma Export Data

• India’s pharmaceutical exports reached USD 30.47 billion in FY 2024–25, marking a 9.4% year-on-year growth.
• Drugs and pharmaceuticals contribute nearly 7% of India’s total merchandise exports by value.
• Pharma export volumes grew 6.9% year-on-year in August 2025.
• The UAE and other Gulf countries remain among India’s key pharma export destinations.

India–Gulf Trade Context

• India’s exports to GCC nations stood at around USD 57 billion in 2024–25.
• Imports from the GCC region exceeded USD 120 billion, largely driven by crude oil and gas purchases.
• A significant share of India’s international air traffic connects to Gulf countries, making the region critical for both passenger and cargo flows.

These numbers show why any disruption in the Gulf region directly affects India’s medical tourism and pharma export flows.