BADDI / KABUL — Afghanistan has accelerated its efforts to forge stronger pharmaceutical trade ties with Indian manufacturers following a near-total collapse of its traditional supply routes through Pakistan. The ongoing border tensions and subsequent closure of key transit points have effectively choked the flow of essential medicines into Afghanistan, prompting a strategic shift toward India’s robust pharmaceutical industry—specifically the manufacturing hub of Baddi in Himachal Pradesh.
For decades, Pakistan served as the primary source of pharmaceutical imports for Afghanistan. However, the recent curtailment of these routes has created a critical shortage of life-saving drugs and general medicines. Traders and officials in Kabul are now looking to bridge this widening consumption gap by engaging with Baddi-based exporters. SL Singla, a veteran exporter who has supplied the Afghan market for over a decade, confirmed a significant surge in interest, noting that a large number of Afghan pharmaceutical traders have recently secured trade visas to facilitate direct procurement from Indian firms.
Long-Term Collaboration and Investments
The engagement extends beyond simple procurement. Discussions are currently underway to establish manufacturing facilities in cities like Kandahar with technical expertise and machinery sourced from India. To facilitate this, Afghan authorities have reportedly begun converting single-entry visas for Indian businessmen into multiple-entry permits. The momentum for this bilateral cooperation was solidified in December 2025 during a high-level Afghan ministerial visit to the Pharmaceuticals Export Promotion Council of India (Pharmexcil).
Major Indian corporate players have already begun capitalizing on this shift. Zydus Lifesciences recently signed a $100 million (approx. ₹830 crore) memorandum of understanding (MoU) with the Afghanistan-based Raoufi International Group for the export of medicines. According to Sanjay Sharma, spokesperson for the Himachal Drug Manufacturers Association, many small and medium enterprises (SMEs) in the Baddi region—which already supply Middle Eastern markets—are well-positioned to serve as a critical pharmaceutical lifeline for Afghanistan.
As deals for general medicines, injectables, and essential drugs are finalized, India is poised to emerge as the dominant player in Afghanistan’s healthcare supply chain, fundamentally reshaping regional trade dynamics in the process.
