A US intelligence report has identified India as a key supplier of precursor chemicals used to manufacture illicit fentanyl, raising concerns in Washington and New Delhi. The 2025 Annual Threat Assessment states that while China remains the primary source, India has become the second-largest supplier.
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The report’s findings come amid trade tensions, with President Donald Trump using tariffs to pressure countries linked to the fentanyl crisis. India’s pharmaceutical industry, known as the “Pharmacy of the World,” is facing scrutiny over lax regulation. Recent arrests in Gujarat and US indictments of Indian executives highlight growing concerns.
With US-India trade exceeding $120 billion in 2024, the issue could complicate relations, potentially leading to tariffs. Experts urge both nations to collaborate on tackling the fentanyl crisis while maintaining trade stability.