Pharma exports up 9.4% in FY25; industry aims for double-digit expansion in 2026-27

Pharma Exports Hit Record High in FY25

India's pharmaceutical sector has notched up an impressive milestone, with exports climbing 9.4% to reach $30.47 billion in the financial year ending March 2025.

This growth underscores the country's strengthening position as a global powerhouse in medicine production and supply. The commerce ministry highlighted this achievement during a recent meeting in Ahmedabad, where officials and industry leaders gathered to discuss strategies for the future.

Over the past decade, the sector has shown steady expansion, fueled by rising international demand for affordable, high-quality drugs. India now ranks third worldwide in pharmaceutical production by volume, shipping medicines to more than 200 countries around the globe.

Key Markets and Products Driving the Surge

The United States remains the largest buyer, accounting for 34% of India's pharma exports, followed by Europe at 19%.

These regions, known for their stringent regulatory standards, receive over 60% of India's shipments, reflecting the reliability of Indian generics, finished dosage forms like tablets and injectables, as well as active pharmaceutical ingredients.

Finished dosage forms have been a standout performer, benefiting from high global demand, scalable production, and better profit margins compared to bulk drugs.

Exports to Africa, Latin America, the Middle East, and the UK have also contributed significantly, with items like vaccines and biosimilars gaining traction. This diverse market access has helped buffer against regional slowdowns and built a resilient export base.

Future Ambitions and Government Backing

Looking ahead, the industry is optimistic about achieving double-digit growth in 2026-27, supported by ongoing policy dialogues and trade engagements.

"The interaction underlined the government's focus on enabling conditions for sustained export acceleration, with industry indicating readiness to target double-digit growth in 2026-27. Engagement with the European Union was discussed in the context of a $572.3 billion pharmaceuticals and medical devices market, while a bilateral trade arrangement with the United States can further improve market access and price competitiveness for Indian pharmaceutical companies."

The domestic market, currently valued at around $60 billion, is projected to double to $130 billion by 2030, providing a strong foundation for export ambitions.

Recent Chintan Shivir discussions emphasized resolving sectoral challenges through collaboration with regulators and Indian missions abroad.

Opportunities in the vast EU market and potential US trade deals could enhance competitiveness and open new doors.

The Pharmaceutical Export Promotion Council has voiced confidence in surpassing last year's figures even within the current fiscal year, driven by high demand and quality assurance.

Investments in innovation, such as through contract research organizations, are expected to propel this momentum further.

In summary, India's pharma exports reached a record $30.47 billion in FY25 with 9.4% growth, led by key markets like the US and Europe, and backed by finished dosage forms. The sector eyes double-digit expansion in 2026-27, with government-industry partnerships paving the way for sustained success and a larger global footprint.