India's Pharmaceutical Exports Show Resilience with $28.3 Billion Growth
India's pharmaceutical exports have demonstrated robust growth, crossing $28 billion in the last financial year despite facing global economic headwinds. According to industry leaders, the sector is poised to nearly double in size, targeting $130 billion by 2030, driven by strategic initiatives and market diversification.
Steady Export Performance Amid Global Challenges
Speaking at the 'Chintan Shivir: Scaling Up Pharma Exports' event, K Raja Bhanu, Director General of the Pharmaceuticals Export Promotion Council of India (Pharmexcil), revealed that pharma exports reached $28.29 billion during April–February FY26. This marks a 5.6 per cent increase compared to the same period in FY25, highlighting the sector's resilience in a volatile global environment.
Bhanu emphasized that despite pricing pressures and trade uncertainties, pharmaceutical exports have maintained their growth momentum. Key drivers include formulations, biologicals, vaccines, and AYUSH products, which have bolstered India's position as a global pharmaceutical powerhouse.
Ambitious Growth Targets for 2030
The Indian pharmaceutical sector, currently valued at approximately $60 billion, is projected to expand to $130 billion by 2030. Bhanu noted that exports hit $30.47 billion in FY2024–25, achieving a 9.4 per cent year-on-year growth. To support this trajectory, Pharmexcil has set an export target of $65 billion by 2030, underpinned by:
- Policy prioritization and faster regulatory clearances
- Diversification into non-traditional markets
- Increased foreign direct investment (FDI) inflows
- Enhanced quality and compliance standards
India ranks third globally in pharmaceutical production by volume, with shipments reaching over 200 markets. Notably, more than 60 per cent of exports go to highly regulated markets, underscoring the sector's adherence to international quality norms.
Market Dynamics and Currency Impact
The United States remains India's largest pharmaceutical export destination, accounting for 34 per cent of total exports, followed by Europe at 19 per cent. Commerce Secretary Rajesh Agrawal commented on the sector's positive outlook, acknowledging that while export targets in dollar terms may be challenging due to a weakening rupee, growth in rupee terms remains favorable.
Agrawal stated, "The target we have set appears difficult to meet, but we will remain on a positive trajectory." He explained that the depreciation of the Indian currency against the US dollar could still result in positive export growth when measured in rupee terms.
Near-Term Outlook and US Tariff Considerations
Pharmexcil Chairman Namit Joshi indicated that India is likely to conclude the current financial year with performance levels similar to FY25. He attributed this to front-loaded buying in the US, where tariff-related issues in 2025 led to an additional $1.6 billion in medicine procurement above normal levels, influencing FY26 figures.
Looking ahead, the external environment, particularly in the US, presents both opportunities and challenges. The US has announced new tariffs of up to 100 per cent on patented drugs and certain high-value pharmaceutical ingredients, set to take effect in August–September 2026 after a transition period. However, the immediate impact on India may be limited, as generic medicines—which constitute about 90 per cent of India's pharmaceutical exports to the US—are currently exempt.
A report by the Global Trade Research Initiative (GTRI) noted that India exported $9.7 billion worth of pharmaceuticals to the US in 2025, representing 38 per cent of its global pharma exports of $25.8 billion. This underscores the critical role of the US market and the need for strategic adaptation to evolving trade policies.
In summary, India's pharmaceutical sector continues to thrive, with exports on a growth path and ambitious targets set for the future. Industry leaders remain optimistic, focusing on innovation, market expansion, and navigating global trade dynamics to achieve sustained growth.
