Speaking at the inaugural session of the ‘Chintan Shivir: Expanding Pharmaceutical Exports’ forum on Saturday, K Raja Bhanu, Director General, Pharmaceutical Export Promotion Board of India (Pharmexil), said pharma exports stood at $28.29 billion in April-February FY26, representing an increase of 5.6 per cent over the same period of FY25.“Despite global challenges, pharmaceutical exports were among the few sectors to maintain growth momentum.
Exports during April-February FY26 stood at $28.29 billion, reflecting a growth of 5.6 per cent over the same period of FY25, led by formulations, biologicals, vaccines and AYUSH products, Pannu said.India’s pharmaceutical sector, currently worth about $60 billion, is expected to grow to $130 billion by 2030, Bhanu said. He added that pharmaceutical exports amounted to $30.47 billion in the fiscal year 2024-2025, recording a growth of 9.4% year-on-year despite global price pressures and trade fluctuations.
He said Pharmexil targets exports worth $65 billion by 2030, supported by policy prioritization, diversification outside traditional markets, increased FDI inflows, and faster regulatory clearances.He said that India currently ranks third in the world in pharmaceutical production in terms of volume, with shipments reaching more than 200 markets. Bhanu also pointed out that more than 60 per cent of India’s pharmaceutical exports go to highly regulated markets, highlighting the quality and compliance standards in the sector.According to him, the US accounts for 34 per cent of India’s pharmaceutical exports, followed by Europe at 19 per cent.Commerce Minister Rajesh Agrawal said the sector is likely to remain on a positive path even if export targets prove difficult to achieve in dollar terms, given the weak rupee.“It seems difficult to achieve the goal we have set, but we will stay on a positive path,” Agrawal said.He added that regardless of whether the targets are achieved in dollar terms, export growth will still reflect positively in rupee terms as the Indian currency continues to weaken against the US dollar.India is likely to end the current financial year at levels similar to FY25, Pharmexcil President Namit Joshi said, noting the impact of prior US buying.“That’s why we expect to reach a level close to last year’s performance, with some resulting growth,” Joshi said.Tariff-related issues in 2025 led to $1.6 billion in drug purchases in the US, above normal levels, and that is expected to impact FY26 numbers, Joshi said.
The backdrop to US tariffs may shape future expectations
While the immediate focus remains on export resilience, the external environment – especially in the US, India’s largest pharmaceutical market – could become a key variable going forward.The United States has announced a new tariff framework targeting patented medicines and some high-value pharmaceutical ingredients manufactured outside America, with duties of up to 100% set to take effect between August and September 2026 after a transition period.However, the near-term hit to India may be limited because generic drugs are currently exempt, and about 90 per cent of Indian drug exports to the US are generics, according to the Global Allergy Research Institute report. The report said that India exported $9.7 billion worth of medicines to the United States in 2025, representing 38 percent of its global pharmaceutical exports of $25.8 billion.