India pharma exports powering on, despite global trade crisis

Despite the ongoing geopolitical tensions and the threat of the US imposing trade sanctions, India’s pharmaceutical exports grew 4.9% year-on-year to $16.14 billion in the first half of FY27, supported by expanding shipments to Europe, ASEAN and Latin America and double-digit growth in bulk drugs and drug intermediates.

Exports increased from $15.38 billion in April-September 2025 to $16.14 billion in April-September 2026, according to data released by the Pharmaceuticals Export Promotion Council of India (Pharmexcil).

The growth comes against the backdrop of India’s pharmaceutical exports crossing $31 billion in FY26. Exports grew from $25.39 billion in FY23 to $27.85 billion in FY24 and to $30.47 billion in FY25, before reaching $31.12 billion in FY26. Exports nearly doubled over the decade from FY14 to FY26, according to Pharmexcil data. The sector now supplies medicines to more than 200 markets and remains one of India’s major export-oriented manufacturing industries, reinforcing India's fame as the 'Pharmacy of the World'. 

 Exports to Europe rose 9.66% to $3.29 billion in H1 FY27, accounting for 20.38% of India’s total shipments. Germany recorded 21.57% growth, while exports to the Netherlands and France increased 15.93% and 15.02%, respectively.

Exports to ASEAN countries grew 21.54%, while Latin America and the Caribbean registered 16.58% growth and Africa 6.48%. The gains across these markets helped sustain overall export growth despite moderation in shipments to the US, India’s largest pharmaceutical export destination. The US accounted for around 34.5% of India’s pharmaceutical exports in FY25, while Europe contributed nearly 19%.

Drug formulations and biologicals remain the largest export category

Drug formulations and biologicals remained the largest export category, accounting for 73.84% of total shipments in H1 FY27 and growing 3.81%. Bulk drugs and drug intermediates recorded 12.07% growth, while surgical exports rose 9.53%.

The trend follows the broader structure of India’s pharmaceutical exports. In FY25, formulations and biologicals accounted for 75.26% of shipments, or $22.93 billion, while bulk drugs and intermediates contributed $4.87 billion, or nearly 16%. The formulations segment grew 11.65% in FY25, compared with 2.41% growth in bulk drugs and intermediates.

Namit Joshi, chairman of Pharmexcil, said India’s global pharmaceutical reputation was built on quality, affordable medicines and large-scale manufacturing, but the next phase of growth would require companies to move up the value chain.

''Indian companies need to become active partners in pharmaceutical innovation through greater investment in research and development, technology transfer and co-development of complex generics, biosimilars and specialised therapies, he said. Europe offers significant opportunities for such collaborations, given its research and innovation ecosystem'', he said.

Bhavin Mehta, vice-chairman of Pharmexcil, said double-digit growth in bulk drugs and drug intermediates reflected the breadth of India’s manufacturing capabilities. Continued investment in quality systems, advanced manufacturing and regulatory preparedness would help exporters, including MSMEs, expand their global participation.

The council said it would continue working with the government, industry and overseas regulators to strengthen market access, regulatory cooperation and export competitiveness, while supporting diversification into emerging markets and higher-value pharmaceutical products.