How so? Outsourcing contracts may go to China, instead, and untold numbers of deals may be postponed, if not scuttled, according to The Business Standard.

“The drug industry could see short-term setbacks, especially in the field of outsourcing,’’ Sujay Shetty, head of Life Sciences at PricewaterhouseCoopers tells the paper. ”Executives of global companies may be asked to refrain from coming to India and many planned visits have been cancelled.’’

Already, CPhI India, one of the largest global industry events that provides drugmakers an opportunity to win business, has been postponed. The three-day exhibition was scheduled to begin at Bombay Exhibition Centre this past weekend. And P-MEC India, a prominent event for pharma machinery and equipment vendors that was scheduled to begin at the same venue, was also postponed.

India’s loss could be China’s gain, especially in securing outsourcing. The developments could help China gain an edge as it has been largely free of such terrorism and has appeared more stable in the current financial meltdown, Ajit Kamath, chairman and managing director, Arch Pharmalabs, tells the paper. “India will have to assure the international community of tough measures, both on the security and economic front,” he says.