India named among top fentanyl precursor suppliers in new US intelligence report

India is emerging as a key player in the global illegal fentanyl trade, according to a new US intelligence report. The 2025 Annual Threat Assessment by the Office of the Director of National Intelligence lists India as the second-largest source of precursor chemicals for synthetic opioids after China, CNN reports.
US voices concern over India’s growing role in fentanyl supply
"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 states. While China remains the primary supplier of components and pill-pressing machinery, India is now firmly in second place.
In previous assessments, India received minimal attention - briefly mentioned in 2024 and not at all in 2023. This year, however, the country has come under closer scrutiny after two employees of pharmaceutical companies were arrested in Gujarat in March, accused of exporting fentanyl precursors to Mexico and Guatemala. Around the same time, US authorities indicted three executives from a Hyderabad-based company for allegedly importing ingredients used in fentanyl production.
Pressure builds amid ongoing US-India trade talks
The report was released during sensitive trade negotiations in which India is seeking to avoid new tariffs from Donald Trump's administration. The US has already imposed tariffs of up to 25% on its top trading partners - China, Mexico, and Canada. Experts warn that India's mention in the threat assessment could be used as a justification for further economic pressure.
India’s government has not yet stated in response. In 2024, the US became India’s largest trading partner, with bilateral trade reaching nearly $120 billion. A US delegation is currently in New Delhi for negotiations, and India has proposed removing import duties on certain manufacturing goods to ease tensions.
A new wave of concern in the US is also linked to the growing threat of a more dangerous combination: fentanyl mixed with xylazine, a veterinary tranquilizer known as the "zombie drug." According to Fox News, the substance is now being trafficked in large volumes across the southern border and is almost always found together with fentanyl - causing severe tissue damage and not responding to naloxone treatment.