Sheikh Hasina’s ouster disrupts India's pharma exports, medical tourism: Report

The political turmoil in Bangladesh, which started last month with student-led protests calling for the resignation of former Prime Minister Sheikh Hasina, followed by her departure from the country, has had a ripple effect on India’s pharmaceutical industry and medical tourism sector, as reported by News18.

The report highlights that pharmaceutical companies are grappling with a range of challenges, including payment blockages and missing shipments, among others. Furthermore, India’s medical tourism has also taken a hit, with patients from the affected region either cancelling their travel plans abruptly or being unable to proceed with their scheduled trips due to the prevailing situation in the neighbouring country.

According to the Pharmaceuticals Export Promotion Council of India (Pharmexcil), an arm that functions under the Ministry of Commerce and Industry, now Indian companies are hesitant to supply products to Bangladesh due to unpaid dues and concerns about financial stability.

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“Due to the political unrest in Bangladesh, the Indian Pharmaceutical industry — which is into export of drugs and intermediates — has been facing significant challenges, including unpaid dues, concerns about the financial stability and logistics issues,” Raja Bhanu, director general of Pharmexcil, told News18.

Also, Bhanu highlighted that due to shared borders, logistics become a major issue, with shipments getting stuck at the border and difficulties in securing insurance but now the conditions are mildly improving.

“In Bangladesh, we may expect the political and economic scenario to improve. However, it is too early to make a conclusive statement on how it will affect our sector,” Bhanu said.

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India plays a significant role in Bangladesh’s pharmaceutical industry, supplying 30% of the country’s pharmaceutical ingredients and catering to both large and small-to-medium-sized enterprises.

According to official government statistics, India’s exports to Bangladesh experienced a decline in the financial year 2024-25. A closer examination of the government data reveals that exports to Bangladesh exhibited fluctuations throughout the financial year 2024-25, with a notable slowdown in June.

Following a substantial 42.48% increase in exports from April to May, the growth rate moderated to a modest 5.66% in June, indicating a loss of momentum despite initial gains. Meanwhile, India’s medical tourism sector has emerged as a vital option for patients from Bangladesh, providing them with access to high-quality medical care at affordable prices.

Rajeev Taneja, CEO of Global Care, a medical value travel company that assists NRI patients in receiving treatment in India, told News18 that they have witnessed the highest number of patients coming from Bangladesh in 2023, contributing to over half of their international medical visitors.

However, the ongoing socio-political unrest in Bangladesh has deeply affected these patients, with many forced to cancel or delay their life-saving treatments.

“This situation is heart-breaking as it directly impacts individuals and families who rely on India’s healthcare system for critical care. The decline in patient visits — up to 50 per cent in some cases — affects hospital revenues and highlights the growing uncertainty for those in need.”