A new US intelligence report has identified India as an increasingly significant source of precursor chemicals and equipment for the illicit fentanyl trade, a designation that could strain relations between Washington and New Delhi as President Donald Trump targets countries perceived as failing to curb the flow of the deadly drug into the United States, as per CNN.
The 2025 Annual Threat Assessment (ATA) report, published by the Office of the Director of National Intelligence this month, highlights India’s growing role in supplying non-state actors with the materials needed to produce fentanyl, a powerful synthetic opioid that is a primary driver of the overdose crisis in the US.
“Nonstate groups are often enabled, both directly and indirectly, by state actors, such as China and India as sources of precursors and equipment for drug traffickers,” the report stated. “China remains the primary source country for illicit fentanyl precursor chemicals and pill pressing equipment, followed by India.”
This marks a significant shift from last year’s ATA report, which mentioned India as a lesser source of precursor chemicals for Mexican cartels. The 2023 report did not mention India in connection to fentanyl at all.
For years, China has been recognized as the main source of both legal fentanyl supplies and illicit precursor chemicals used in the production of the drug, which is often processed in Mexico before being smuggled across the US border.
India is a global leader in generic drug manufacturing, earning it the moniker “Pharmacy of the World.” However, the country’s pharmaceutical industry has faced scrutiny regarding regulation and quality control.
Recent developments have fueled concerns. On March 17, India’s Anti-Terrorist Squad (ATS) in Gujarat announced the arrest of two individuals linked to Surat-based pharmaceutical companies allegedly involved in exporting illicit fentanyl precursors to Mexico and Guatemala, according to the Press Trust of India. CNN has reached out to the ATS for comment.
Furthermore, the US Department of Justice recently indicted three top executives from a Hyderabad-based pharmaceutical company for allegedly importing ingredients used in the production of illicit fentanyl.
The report emerges at a sensitive juncture, as India seeks to avoid potential US tariffs. The US was India’s largest trading partner in 2024, with almost $120 billion in trade. However, India only ranked tenth in the list of US trading partners for the same year.
The Trump administration recently imposed tariffs on China, Mexico, and Canada, citing the need to stem the flow of fentanyl into the US.
Indian Prime Minister Narendra Modi visited Washington in February, discussing defense, technology, trade, and economic growth with Trump.
