Leading India's Pharma Supply Chain With Technology, Trust and Traceability
Manoj Kochar, President, ASPA, 0
India’s pharmaceutical industry is globally renowned for its remarkable capacity, cutting-edge innovation, and affordability, making it a cornerstone of healthcare both domestically and internationally. As the sector evolves, its expansion into Tier II and III cities marks a crucial step towards inclusive healthcare access for millions across the country. However, this growth has exposed critical vulnerabilities in supply chain infrastructure, traceability mechanisms, and regulatory oversight. These weaknesses threaten not just commercial interests but also patient safety and public trust pillars upon which the industry’s credibility is built. Addressing these challenges is essential to ensure that quality medicines reach every corner of India securely and efficiently.
The Uneven Growth of Pharmaceutical Distribution and Manufacturing Challenges
India’s pharmaceutical landscape is witnessing a significant shift as demand for medicines grows in Tier II and III cities. This evolution reflects a broader push toward healthcare access in semi-urban and rural regions an encouraging sign of progress. However, the distribution of pharmaceutical products across these geographies remains uneven in its structure and reliability. Unlike metro cities, where supply chains are often governed by formal systems and regulatory oversight, distribution in smaller cities tends to rely on a patchwork of local distributors, unregulated intermediaries, and informal retail networks. This unevenness creates multiple vulnerabilities that directly impact manufacturing logistics, inventory planning, and timely delivery.
Manufacturers face the complex task of scaling production to meet diverse regional demands while ensuring that serialized packaging and authentication technologies integrate seamlessly into fast-paced assembly lines. Disruptions caused by counterfeit infiltration, supply inconsistencies, or gaps in traceability lead to costly recalls, production delays, and increased quality control efforts affecting both domestic supply and export commitments.
One of the most serious consequences of these structural weaknesses is the entry of counterfeit or substandard medicines into the legitimate supply chain. In the absence of standardized verification protocols and reliable tracking systems, such breaches are often detected late, placing both patient safety and brand integrity at risk. This highlights the urgent need for a more cohesive, tech-enabled distribution framework that supports manufacturers in safeguarding product authenticity from plant to patient.
The Impact of Weak Links on Public Health, Manufacturing, and Trust
When counterfeit medicines enter the legitimate supply chain, the consequences go beyond failed treatment. They risk long-term harm to patient health, drive antibiotic resistance, and erode trust in healthcare providers. For pharmaceutical manufacturers, the implications are equally severe: not only is their brand integrity at stake, but so too is the credibility of India’s pharmaceutical exports, many of which originate in facilities supplying both domestic and international markets.
A key insight from the ASPA–CRISIL Report 2022 study is that counterfeit consumption is not always accidental. In underserved regions, consumers may knowingly opt for suspicious products due to affordability or availability gaps. This reinforces the urgent need for reliable supply and price controls alongside authentication efforts. Without resolving access issues, even the most sophisticated security technologies will have limited reach.
Moreover, the absence of standardized supply protocols in these markets contributes to inefficiencies and makes tracking difficult. Distributors and retailers often operate outside of digitized a system, which weakens recall mechanisms, complicates audits, and undermines the very frameworks intended to ensure safety. For manufacturers, this translates to greater operational risks and challenges in maintaining compliance with domestic and international quality standards.
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Technology as a Scalable and Effective Manufacturing Enabler
To address these vulnerabilities, pharmaceutical companies are increasingly adopting layered, phygital solutions that blend physical security with digital verification. Packaging innovations such as holograms with covert features, tamper-evident labels, and security foils provide a visible first line of defense, easily recognizable by pharmacists and effective in deterring tampering or duplication. However, physical markers alone are no longer sufficient. The integration of QR codes and serialization allows every individual medicine pack to be digitally tracked from factory to retail point. When linked to mobile applications and cloud-based platforms, these
tools empower even a rural consumer to verify product authenticity in real time.
Manufacturers are also integrating these technologies into their production workflows using inline serialization, automated packaging lines, and IoT-enabled sensors to ensure that every product leaving the manufacturing unit is secure and traceable. This reduces the risk of counterfeit products entering the market, streamlines quality control, and enhances regulatory compliance.
Further reinforcing the system, blockchain technology is now being explored to create immutable records of product movement, offering transparency and traceability at every handover. Combined with AI-enabled dashboards and RFID tracking, manufacturers can monitor their supply chains in real time, identify anomalies, and respond to breaches with greater agility.
Importantly, these tools are increasingly aligned with global standards such as ISO 22383, which outlines best practices for product authentication. Adopting such standards ensures interoperability, supports regulatory audits, and prepares the industry for future global compliance requirements.
The Case for Collective Action and Policy Support
While technology forms the backbone of secure supply chains, it cannot operate in isolation. The problem is too complex, and too widespread, for any single entity to address alone. Industry-wide collaboration is essential. The ASPA CRISIL Report 2022 stresses the urgent need for cross-sector collaboration among manufacturers, packaging providers, technology firms, regulators, and industry associations to develop a unified, technology-forward authentication ecosystem.
ASPA has already commissioned the second edition of its State of Counterfeiting in India 2025 Report in collaboration with CRISIL, aimed at delivering updated, sector-wide intelligence across high-risk industries including pharmaceuticals, agriculture, consumer durables, automotive, apparel, and fast-moving consumer goods. This comprehensive report will offer a deep-dive analysis into the current landscape of counterfeiting, providing credible insights and actionable recommendations for brand owners, regulators, policymakers, and solution providers. The objective is to empower stakeholders with the knowledge needed to strengthen India’s anti-counterfeiting ecosystem. This initiative builds on the success of the first edition released in 2022, which became a landmark reference document, widely cited by government and private sector leaders, featured in national and international forums, and recognized as a vital tool for industry advocacy and awareness.
ASPA works closely with industry leaders, regulators, and technology experts through policy dialogues, technical workshops, and awareness campaigns to promote secure and scalable supply chain solutions. One notable example is the Traceability and Authentication Forum (TAF) 2025, a flagship initiative led by ASPA. This forum brought together stakeholders from across the ecosystem to address emerging threats, share regulatory insights, and showcase innovative authentication technologies. Platforms like TAF are essential for aligning with global best practices, enabling interoperability, and ensuring that even smaller manufacturers have access to affordable, effective tools to combat counterfeiting and enhance traceability.
In parallel, public awareness and accessibility must improve. According to the report, a significant portion of counterfeit purchases occur without consumer knowledge. Simple, mobile-based verification systems must be made mainstream, not just optional. Governments can support this effort by mandating digital traceability, enforcing stronger penalties for counterfeiters, and enabling regulators with data-driven tools to track violations across regions.
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Rebuilding Trust through Transparent and Inclusive Systems
Ultimately, securing the pharmaceutical supply chain is not just about blocking fakes; it’s about building a transparent, verifiable system that functions equally well. The industry
must treat supply chain integrity not as a cost center or compliance obligation, but as a strategic investment, one that safeguards patient lives, protects brand reputation, and ensures India’s continued leadership in global healthcare.
Manufacturers that lead in this space will be recognized not only for the quality of their products but for the reliability of their delivery systems. Trust is the sector’s most valuable asset, and in the face of growing scrutiny, only transparent and inclusive systems can preserve it. With the right mix of secure packaging, digital authentication tools, blockchain-backed traceability, and alignment with international standards, India can create a pharma ecosystem that is expansive and secure, ready to serve every citizen with equal confidence.
Manufacturers are also integrating these technologies into their production workflows using inline serialization, automated packaging lines, and IoT-enabled sensors to ensure that every product leaving the manufacturing unit is secure and traceable. This reduces the risk of counterfeit products entering the market, streamlines quality control, and enhances regulatory compliance.
Further reinforcing the system, blockchain technology is now being explored to create immutable records of product movement, offering transparency and traceability at every handover. Combined with AI-enabled dashboards and RFID tracking, manufacturers can monitor their supply chains in real time, identify anomalies, and respond to breaches with greater agility.
Importantly, these tools are increasingly aligned with global standards such as ISO 22383, which outlines best practices for product authentication. Adopting such standards ensures interoperability, supports regulatory audits, and prepares the industry for future global compliance requirements.
With the right mix of secure packaging, digital authentication tools, blockchain-backed traceability, and alignment with international standards, India can create a pharma ecosystem that is expansive and secure, ready to serve every citizen with equal confidence.
The Case for Collective Action and Policy Support
While technology forms the backbone of secure supply chains, it cannot operate in isolation. The problem is too complex, and too widespread, for any single entity to address alone. Industry-wide collaboration is essential. The ASPA CRISIL Report 2022 stresses the urgent need for cross-sector collaboration among manufacturers, packaging providers, technology firms, regulators, and industry associations to develop a unified, technology-forward authentication ecosystem.
ASPA has already commissioned the second edition of its State of Counterfeiting in India 2025 Report in collaboration with CRISIL, aimed at delivering updated, sector-wide intelligence across high-risk industries including pharmaceuticals, agriculture, consumer durables, automotive, apparel, and fast-moving consumer goods. This comprehensive report will offer a deep-dive analysis into the current landscape of counterfeiting, providing credible insights and actionable recommendations for brand owners, regulators, policymakers, and solution providers. The objective is to empower stakeholders with the knowledge needed to strengthen India’s anti-counterfeiting ecosystem. This initiative builds on the success of the first edition released in 2022, which became a landmark reference document, widely cited by government and private sector leaders, featured in national and international forums, and recognized as a vital tool for industry advocacy and awareness.
ASPA works closely with industry leaders, regulators, and technology experts through policy dialogues, technical workshops, and awareness campaigns to promote secure and scalable supply chain solutions. One notable example is the Traceability and Authentication Forum (TAF) 2025, a flagship initiative led by ASPA. This forum brought together stakeholders from across the ecosystem to address emerging threats, share regulatory insights, and showcase innovative authentication technologies. Platforms like TAF are essential for aligning with global best practices, enabling interoperability, and ensuring that even smaller manufacturers have access to affordable, effective tools to combat counterfeiting and enhance traceability.
In parallel, public awareness and accessibility must improve. According to the report, a significant portion of counterfeit purchases occur without consumer knowledge. Simple, mobile-based verification systems must be made mainstream, not just optional. Governments can support this effort by mandating digital traceability, enforcing stronger penalties for counterfeiters, and enabling regulators with data-driven tools to track violations across regions.
Also Read: CEO Insights Hall of Fame: 9 Unsung Heroes Who Reinvented Healthcare in India
Rebuilding Trust through Transparent and Inclusive Systems
Ultimately, securing the pharmaceutical supply chain is not just about blocking fakes; it’s about building a transparent, verifiable system that functions equally well. The industry
must treat supply chain integrity not as a cost center or compliance obligation, but as a strategic investment, one that safeguards patient lives, protects brand reputation, and ensures India’s continued leadership in global healthcare.
Manufacturers that lead in this space will be recognized not only for the quality of their products but for the reliability of their delivery systems. Trust is the sector’s most valuable asset, and in the face of growing scrutiny, only transparent and inclusive systems can preserve it. With the right mix of secure packaging, digital authentication tools, blockchain-backed traceability, and alignment with international standards, India can create a pharma ecosystem that is expansive and secure, ready to serve every citizen with equal confidence.