India’s pharmaceutical industry has emerged as a dominant force in the global medicines market, earning its reputation as the “pharmacy of the world.” In FY2024–25, India’s pharmaceutical exports grew by 9.4% to $30.47 billion, driven by its strong presence in highly regulated markets and unmatched capacity in generic drug production.
With the sector valued at around $60 billion domestically and poised to more than double to $130 billion by 2030, the momentum behind exports reflects both India’s manufacturing strength and rising global demand for affordable, high‑quality medicines.
India’s Global Footprint in Pharmaceuticals
India ranks third globally in pharmaceutical production by volume and fourteenth by value, underlining its scale and cost‑competitiveness. Its medicines reach more than 200 countries, with a significant share entering regulated markets such as the United States (34% of exports) and Europe (19%).
Key Export Destinations (FY25):
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United States
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United Kingdom
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Brazil
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France
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South Africa
India supplies around 20% of global generic medicines and 60% of global vaccine requirements, making it indispensable to public health systems worldwide, especially in low‑ and middle‑income countries.
What India Exports: A Diverse Portfolio
The industry’s export success is supported by a broad range of products:
• Finished Formulations
Tablets, capsules, injectables, and other dosage forms that address widespread therapeutic needs.
• Active Pharmaceutical Ingredients (APIs)
Essentials used by manufacturers globally to produce finished drugs.
• Bulk Drugs & Intermediates
Raw materials that feed into pharmaceutical production worldwide.
• Vaccines
A growing segment, crucial for immunisation programmes across continents.
More than 10,500 pharmaceutical manufacturing units operate in India, and the country boasts over 800 plants approved by the US Food and Drug Administration (USFDA) — the highest number outside the United States.
Drivers of Export Growth
Several factors are powering the expansion of India’s pharmaceutical exports:
• Cost Efficiency
Lower production costs give Indian generics a competitive edge over global peers.
• Regulatory Approvals
Extensive certifications, including USFDA and European regulators, enable access to stringent markets.
• Government Support Initiatives
Government programmes such as the ₹10,000 crore Biopharma SHAKTI initiative aim to strengthen API manufacturing and reduce import dependence.
• Skilled Workforce and Infrastructure
A deep pool of scientific talent combined with well‑established manufacturing clusters supports high volume and quality output.
Government and Industry Partnership
In early 2026, government officials and industry stakeholders met at a Chintan Shivir in Ahmedabad to chart the next phase of export growth. Discussions focused on enabling conditions for sustained export acceleration, addressing regulatory challenges, and expanding India’s footprint in emerging and traditional markets alike.
Industry representatives expressed confidence in achieving double‑digit export growth by 2026–27, underpinned by enhanced market access and supportive policy reforms.
Global Significance of India’s Pharma Exports
India’s robust export performance carries profound implications for global health and economics:
• Affordable Access to Medicines
India’s generic drugs are widely used by governments, healthcare providers, and patients around the world, reducing the cost of essential treatments.
• Vaccine Security
During health emergencies such as pandemics and large‑scale immunisation drives, India’s vaccine supply has proven critical for global response efforts.
• Supply Chain Resilience
Diversified production locations and strong manufacturing ecosystems help mitigate supply disruptions.
• Contribution to Global Healthcare Costs
By providing cost‑effective pharmaceuticals, India helps lower healthcare expenditures in both developed and developing nations.
Challenges and Opportunities Ahead
Despite strong fundamentals, the industry faces challenges such as:
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Regulatory barriers in certain markets
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Rising competition from other low‑cost manufacturers
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Fluctuating commodity prices that affect input costs
However, opportunities also abound. Expansion in biologics, biosimilars, niche therapies, and increased investment in research and development could unlock new export avenues and enhance long‑term growth.
Looking Forward
India’s pharmaceutical exports are at a pivotal moment. With strong production capacity, deep regulatory certifications, and an evolving policy framework focused on export facilitation, the country is well‑positioned to sustain its role as a global supplier of affordable medicines.
As healthcare needs continue to grow worldwide — particularly in ageing populations and emerging economies — India’s pharma industry will play an increasingly vital role in ensuring access to safe, effective, and affordable medicines for billions of people.
India’s journey from a domestic producer to a global pharmaceutical powerhouse demonstrates not only industrial strength but also a commitment to global health security.