India's Pharma Exports Cross $28 Billion Mark in FY26, Driven by Formulations and Biologicals

India's pharmaceutical exports have surpassed $28 billion in the current financial year through February, registering a growth of over 5 per cent compared to the same period last year, a senior government official confirmed at a high-level industry gathering.

The announcement came during the inaugural session of 'Chintan Shivir: Scaling Up Pharma Exports', where officials and industry leaders assembled to chart the course for accelerating India's pharmaceutical trade on the global stage. The official highlighted that the growth was primarily led by formulations, biologicals, vaccines, and Ayush products — segments that have increasingly gained recognition in international markets.

"Despite global challenges, pharmaceutical exports have been among the few sectors to maintain growth momentum," the official stated, adding that exports from April to February in FY26 stood at $28.29 billion, reflecting a 5.6 per cent increase over the same period in FY25.

Rajesh Agrawal, Secretary in the Department of Commerce, offered a nuanced perspective on target achievement. He noted that even if the set targets in dollar terms prove difficult to achieve, overall export performance would still show meaningful growth in rupee terms, owing to the continued weakening of the Indian rupee against the US dollar — a factor that effectively boosts the value of exports when measured in domestic currency.

Looking back at the previous fiscal year, India's pharmaceutical exports reached $30.47 billion in FY24–25, marking a year-on-year growth of 9.4 per cent. This was achieved despite mounting global pricing pressures and significant trade volatility — a testament to the resilience and competitiveness of India's pharmaceutical sector.

India currently ranks third globally in pharmaceutical production by volume, a position that reflects decades of investment in manufacturing capacity, scientific talent, and regulatory alignment. The country exports to over 200 markets worldwide, making it one of the most geographically diversified pharmaceutical suppliers in the world.

A defining characteristic of India's pharma export profile is its strong orientation toward highly regulated markets. More than 60 per cent of the country's pharmaceutical exports are directed toward markets with stringent regulatory standards, underscoring the industry's consistent commitment to compliance and quality.

This is not a minor distinction — approval in regulated markets such as the US, Europe, Canada, and Australia requires meeting some of the most demanding quality benchmarks in global trade.

The United States remains the single largest destination for Indian pharmaceutical exports, accounting for 34 per cent of total outbound shipments. Europe follows as the second-largest market, contributing 19 per cent of exports. Together, these two regions account for more than half of India's pharmaceutical export basket, highlighting the sector's deep integration into Western healthcare supply chains.

Beyond pharmaceuticals, India's broader healthcare manufacturing ecosystem is also on a strong growth trajectory. A recent report by Rubix Industry projected that India's medical devices industry is set to reach $50.1 billion by 2030, up from $15.2 billion in 2025 — implying a compound annual growth rate of 26.9 per cent over the five-year period. This would represent a more than threefold expansion of the sector within half a decade.

The Rubix Industry report attributed this projected growth to a series of targeted government policy interventions. These include the National Medical Devices Policy, the Production-Linked Incentive (PLI) Scheme, the Scheme for Promotion of Medical Devices Parks, and MedTech Mitra — an initiative designed to support medical technology innovators and startups navigate regulatory and market access challenges.

However, the report also drew attention to a structural challenge that continues to weigh on the domestic medical devices ecosystem. In FY25, India's medical device exports reached $4.1 billion, while imports stood significantly higher at $8.6 billion. The gap underscores that 70 to 80 per cent of domestic demand is currently being met through imports, particularly for technologically advanced devices. This import dependency represents both a challenge and an opportunity — one that policymakers and industry players are working to address through enhanced domestic manufacturing capabilities.

Taken together, the data paints a picture of an Indian healthcare manufacturing sector that is growing confidently in its export reach while simultaneously grappling with the need to deepen domestic production, particularly in high-technology medical equipment. With strong government policy support, a proven track record in regulated markets, and an expanding global footprint, India appears well-positioned to strengthen its role as a critical node in global pharmaceutical and medical device supply chains in the years ahead.