Pharma Exports Reach $28 Billion By February, Set To Grow In FY26 In Rupee Terms

India’s pharmaceutical exports reached over $28 billion during April–February FY26, reflecting a growth of 5.6% compared to the same period last year, according to industry officials.

The development was supported by major areas of growth like formulations, biologicals, vaccines, and AYUSH products, which signifies that the demand remains steady in international markets.

The sector has recorded a stable growth trend despite the pricing pressure as well as global trade issues.

What Is Driving Growth In Pharma Exports?

The sector, currently valued at around $60 billion, is projected to grow significantly, with industry bodies targeting $65 billion in exports by 2030.

In FY25, the exports were recorded at $30.47 billion, indicating a high year-on-year growth of 9.4%. The industry is expected to grow even more with more emphasis on policy backing, product diversification and enhancements in regulations.

India remains highly ranked in the world, with the third largest volume of pharmaceutical production and exportation to more than 200 markets.

More than 60% of exports are destined for regulated markets, a clear indication of the sector's adherence to established standards. The United States continues to be the primary market, representing 34% of all exports, with Europe following at 19%.

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What Are The Key Challenges And Outlook?

Analysts observed that the international pricing and tariff-related trends can have short-term effects on export activities.

An increase in medicine procurement in the United States in 2025, about $1.6 billion above normal levels, is expected to impact demand trends in FY26.

Consequently, the industry is likely to close the ongoing financial year near past performance, and with a small growth.

Although it may be difficult to meet the target of exports in dollar terms, a weaker rupee will tend to boost growth in rupee terms.

The ultimate export numbers will rely on the March data, but the general picture is stable despite the global uncertainties.

Sources:

The Hindu

The Tribune