India’s pharmaceutical industry has long been a global powerhouse, producing a significant share of the world’s medicines and vaccines. However, recent developments have raised international concerns about the country’s growing connections to the trade of illicit fentanyl precursors, sparking questions about regulation and enforcement within its drug manufacturing sector.

A newly released US intelligence report, the 2025 Annual Threat Assessment (ATA), identifies India as an emerging supplier of chemical ingredients critical to the illicit fentanyl trade. Fentanyl, a synthetic opioid up to 100 times more potent than morphine, has been a leading cause of overdose deaths in the United States, contributing to a spiralling opioid crisis. While China remains the primary source of illegal fentanyl chemicals, India is now playing an increasingly significant supporting role, according to the report.

Criminal Links to Illicit Fentanyl Chemicals

The ATA report states that non-state actors are frequently “enabled, both directly and indirectly, by state actors… such as China and India” in sourcing illegal fentanyl chemicals. Historically, Mexican drug cartels relied largely on Chinese suppliers for fentanyl precursors, which are often processed in Mexican laboratories before being transported across US borders. India’s emergence to prominence in the illicit trade reflects a recent shift in global supply chains.

India is no stranger to controversy surrounding its pharmaceutical exports. On March 17, authorities in Gujarat arrested individuals allegedly linked to companies exporting fentanyl ingredients to Mexico and Guatemala. Shortly after, the US Department of Justice indicted three executives from a Hyderabad-based pharmaceutical firm accused of importing compounds used to manufacture illicit fentanyl.

Trade Tensions and Diplomatic Challenges

This revelation comes at a sensitive time for India, as it works to safeguard its economic relationship with the United States. The US was India’s largest trading partner in 2024, accounting for nearly $120 billion in bilateral trade, but recent tensions threaten to strain these ties.

The ATA report’s findings could amplify diplomatic complexities, with experts already speculating about potential trade reprisals. Earlier this year, the Trump administration imposed tariffs on key trading partners, including China, Mexico, and Canada, citing the urgency to combat the fentanyl crisis. Indian exporters now face concerns about being subject to similar penalties.

Prime Minister Narendra Modi’s February visit to Washington aimed to strengthen trade and defence ties, with both nations committing to “more resilient” supply chains. However, the ATA report underscores the need for concrete collaborative measures to address the opioid epidemic.

Time to Act Amid the Global Opioid Crisis

India’s pharmaceutical sector is at a crossroads. While its immense production capabilities position it as a vital global supplier of life-saving medicines, the risks posed by a lack of stringent regulation threaten to undermine its reputation. Recent arrests and indictments of individuals tied to illicit fentanyl precursors illustrate the urgent need for closer scrutiny within the industry.

Experts have called for robust reform, not only to uphold public health and safety but also to maintain ethical industrial practices that ensure legitimacy. With the devastating impact of fentanyl addiction continuing to ripple through communities worldwide, nations and industries must unite to eliminate the availability of harmful substances, paving the way for healthier, addiction-free futures.

Source: CNN