India Emerges as Key Supplier of Fentanyl Precursors, US Report Finds

A 2025 US intelligence report reveals that India has become a crucial supplier of precursor chemicals for the illicit production of fentanyl. This situation is complicating trade relations, especially with President Donald Trump’s tariffs targeting nations linked to the opioid crisis. The report indicates that India is the second-largest source of these chemicals after China, which raises significant concerns about the weaknesses in India’s pharmaceutical industry which is a $50 billion sector that has faced criticism for its very lax regulatory practices.

Indian authorities have arrested several individuals in Gujarat for exporting precursors to Mexico, and on the other side, the US has indicted executives from a firm based in Hyderabad for smuggling fentanyl ingredients. These cases go to show how criminal networks are taking advantage of India’s reputation as the “Pharmacy of the World” to drive a drug trade that contributes to thousands of overdose deaths in the US each year.

These findings come at a time when Trump is imposing tariffs on major trade partners linked to fentanyl, such as China and Mexico. India, which had a trade volume of 120 billion with the US in 2024, now finds itself at risk of facing similar penalties, despite ongoing efforts to strengthen economic ties. During Prime Minister Narendra Modi’s recent visit to Washington, both nations promised to ramp up trade to 500 billion by 2030, but the fentanyl issue could put a damper on that progress.