With China undertaking fresh lockdowns due to their zero COVID-19 policy, the fear is that it might impact supplies of key starting materials and active pharma ingredients - the inputs that go into making formulations or drugs.

Remember, India imports around 70-80 percent of their key starting material and API requirement from China.

Feedback from API companies as of now however is that there is no impact on the availability of key starting materials or APIs from China. Some ports are functional hence overall movement of goods is taking place, however it is slow.

Inventories are currently either in the port or on the sea currently. However, they do sound a note of caution. They fear shipments could get impacted April onwards and concern will be when forward covers reduce. There is likely to be more clarity next week.

Companies estimate the worst case is an impact of 20-25 percent on production in May but no shutdown in plants.

To discuss the impact of Chinese lockdown on pharma companies, CNBC-TV18 spoke to Nithya Balasubramanian, Director at Sanford Bernstein.

Watch video for more.