- India's pharma export share is 2.8%, indicating room for growth amid rising demand
- Global pharma and API import demand is valued at around $1.3 trillion for 2025
- India's pharma sector contributes 1.7% to GDP and supports 2.7 million jobs
While India remains one of the world's largest suppliers of generic medicines and a major provider of vaccines and essential drugs, its global export share in pharmaceuticals and Active Pharmaceutical Ingredients (API) remains modest at 2.8 per cent, indicating scope for expansion amid rising global demand for medicines, biologics, and speciality therapeutics, a NITI Aayog report said on Tuesday.
Global pharmaceutical and API import demand is valued at approximately $1.3 trillion, including $261.2 billion in Active Pharmaceutical Ingredients (APIs) for 2025.
“India's pharmaceutical sector has emerged as a strategic pillar of the economy, supported by a strong manufacturing base, global competitiveness in generic medicines, and growing integration into international healthcare supply chains,” said the report for Q4 FY26.
The industry contributes over 1.7 per cent to India's GDP, 7.2 per cent of manufacturing GVA, supports approximately 2.7 million livelihoods, and exported pharmaceutical and API products worth nearly $35.8 billion.
According to the report, India's comparative advantage remains concentrated in formulations, particularly retail medicaments and generic drugs, where it remains highly competitive even in regulated markets such as the United States and Europe.
However, the global pharmaceutical landscape has increasingly shifted towards high-value segments such as biologics, vaccines, immunologicals, and advanced therapeutics, where India's export presence remains limited, the report noted.
NITI Aayog Vice Chairman Ashok Kumar Lahiri said that India's trade sector has demonstrated considerable resilience and adaptability.
“India is the world's leading supplier of generic medicines and a major provider of vaccines and essential therapeutics, making an important contribution to global health security. However, changing demand patterns, tighter regulatory standards, and evolving supply chains are reshaping the industry,” he mentioned.
While India has established strong capabilities in formulations and generics, expanding into high-value segments and leveraging the ongoing diversification of global supply chains present significant opportunities to strengthen its position as a global pharmaceutical and innovation hub, said Lahiri.
During FY 2025-26, India's total merchandise and services trade reached approximately $1.84 trillion, reflecting the country's expanding integration with global markets and the increasing sophistication of its export basket.
“As India progresses towards its long-term development aspirations, enhancing export competitiveness, raising domestic value addition, and deepening participation in value chains will remain critical to sustaining high and inclusive growth,” Lahiri noted.
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