India’s pharmaceutical exports grew by 9.4% to USD 30.47 billion in fiscal year 2024-25, reinforcing its position as one of the world’s most important drug producers and suppliers. Industry leaders, policymakers, and exporters have now set ambitious plans to achieve double-digit export growth by 2026-27, backed by strengthened trade engagement with key markets, regulatory collaboration, and expanding capabilities in high-value segments.
Author: Aashiya Jain | EQMint | Business News
For several decades the Indian pharmaceutical industry has quietly and consistently expanded its global footprint earning a reputation as the “pharmacy of the world” From affordable generics to active pharmaceutical ingredients APIs India’s medicines reach every corner of the globe In the fiscal year 2024-25 this vital sector recorded a significant milestone its exports grew by nearly 10% climbing to an impressive USD 30.47 billion. This performance reflects not just strong production capability but also strategic coordination between industry stakeholders and government authorities It also sets the stage for an even more ambitious growth trajectory over the next few years.
The industry has built this reputation through years of consistent output and global trust It’s not just about making drugs it’s about making them accessible and affordable And that matters especially in markets where cost is a major barrier .Government policies have helped of course.
Export incentives streamlined regulations and international trade agreements all play a role But so does the industry’s ability to adapt quickly to global demand shifts. Looking ahead the goal is to keep that momentum going maybe even accelerate it.
The ambition is clear: expand capacity improve quality and deepen global partnerships That way India stays not just relevant but essential in the global pharma supply chain. And honestly that’s not just good for business It’s good for public health everywhere because when India produces more the world gets more access to life-saving medicines.
Strong Growth Amid Challenging Times
Pharmaceutical exports grew 9.4% in FY25, crossing the USD 30 billion mark a testament to the resilience and competitiveness of India’s drug makers on the global stage. This growth comes despite headwinds like pricing pressures in major markets and stringent regulatory requirements that typically challenge exporters.
The achievement is particularly meaningful considering that India’s pharma exports now serve more than 200 countries worldwide, touching every region from North America to Africa. Such diversification helps buffer the industry against demand fluctuations in any single market, while strengthening its global presence.
India’s Global Position: A Leader in Volume and Reach
India holds a particularly powerful position in global pharmaceuticals:
- It ranks third in the world by volume of medicines produced and exported, trailing only a few global peers.
- Over 60% of these exports go to highly regulated markets, including the United States and Europe, where compliance standards are among the strictest.
- The U.S. market alone accounts for roughly 34% of India’s pharmaceutical exports, while Europe contributes about 19% underscoring the strong demand and reliability of Indian products abroad.
This broad global acceptance of Indian medicines, especially in developed markets, speaks to sustained quality, cost competitiveness, and trust built over many years.
A Bold New Target: Double-Digit Growth by 2026-27
While the 9.4% rise in exports is commendable, the industry now aims higher. Collaborations between the government, regulators, and industry players at forums such as the Chintan Shivir in Ahmedabad have established a roadmap to accelerate export momentum and aim for double digit growth by 2026-27.
Achieving this will require focused strategies on several fronts:
- Enhanced market access and trade engagement: Strengthening ties with the European Union and the United States through trade dialogues and bilateral arrangements could help reduce barriers and improve competitiveness.
- Regulatory collaboration: Streamlining compliance processes with stringent regulators, particularly in markets like the U.S. and EU, will simplify approvals and encourage faster entry of Indian products.
- Support for Micro, Small & Medium Enterprises (MSMEs): Smaller exporters often struggle with documentation, inspection protocols, and meeting global standards addressing these challenges can unlock new export potential.
These combined efforts are designed to not only boost growth but also enhance India’s credibility as a global partner in healthcare.
Beyond Generics: Future Drivers of Growth
Although generics still make up the core of Indian pharma exports industry trends are shifting toward higher value segments. Complex generics injectables biosimilars and contract manufacturing for global innovators are becoming key areas for sustainable expansion.
These products usually carry higher margins and are less vulnerable to commoditisation than traditional generics. This strategic diversification will likely play a big role in hitting the industry’s double-digit growth targets. Especially as global healthcare systems get more sophisticated and demand more specialized therapies.
Government Support and Policy Push
Sustained government engagement remains pivotal. Regular consultations between policymakers and industry representatives aim to:
- Reduce regulatory bottlenecks
- Improve coordination between Indian missions abroad and exporters
- Facilitate timely responses to market challenges
Such support ensures that India’s manufacturing and export ecosystem remains competitive and adaptive to global trends.
The sector’s estimated overall size of around USD 60 billion today is expected to balloon to USD 130 billion by 2030, reflecting not just export growth but deeper integration into global pharmaceutical value chains.
Looking Ahead
India’s pharmaceutical export story is one of persistence adaptation and rising ambition. Crossing the USD 30 billion threshold in FY25 reflects a solid foundation built on decades of industry resilience. But the journey is far from over. With collective efforts focused on higher-value products stronger trade partnerships regulatory alignment and policy support the industry aims to outpace its own achievements and secure a stronger role in global healthcare by 2027 and beyond.
If India succeeds in achieving double-digit export growth in the coming years it will not only bolster the economy but also reinforce its position as a trusted indispensable source of affordable high-quality medicines worldwide India’s pharmaceutical export story is one of persistence adaptation and rising ambition.
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