Introduction
India has emerged as a key global supplier of pharmaceuticals, with a strong presence in generic medicines, formulations, and bulk drugs. According to Pharmexcil, the country’s pharmaceutical exports have shown consistent growth, driven by cost competitiveness, high-quality manufacturing, and a robust regulatory framework. India exports to over 200 countries, with major markets including the US, Europe, Africa, and Asia. Drug formulations and biologicals account for the largest share of exports, followed by bulk drugs and drug intermediates. The Indian pharmaceutical sector benefits from a large pool of skilled manpower, advanced manufacturing capabilities, and strong R&D support, making it a preferred global sourcing destination. The industry continues to play a vital role in ensuring access to affordable medicines worldwide while contributing significantly to India’s export earnings and economic growth. India plays an important role in the global pharmaceuticals and vaccine industry. It is the largest provider of generic medicines globally.
India’s category-wise export share (FY25)
Source: Pharmaceuticals Export Promotion Council, Ministry of Commerce
The country has a share of 20% in the global supply volume and contributes to around 60% of the global vaccines[HK2.1]. India ranks third in the world in terms of volume and is the 11th largest in terms of value[HK3.1]. Key segments of the Indian pharmaceutical industry are OTC medicines, Generics, APIs, Vaccines, Biosimilars, and Custom Research Manufacturing (CRM).
India is the world leader in supplying vaccines like DPT, BCG, and Measles. It also has the highest number of US FDA-approved plants outside of the USA[HK4.1]. The key USP of the Indian Pharmaceutical Industry is affordable price and high quality and because of this, India is also called the “Pharmacy of the World”. One of the major achievements of the Indian Pharma Industry is access to affordable HIV drugs. Additionally, India is one of the largest suppliers of low-cost vaccines to the world.
India majorly exports drug formulations & biologicals, and these products contribute to [HK5.1]above 75% of the total pharmaceutical exports out of India.
Export Trend
India’s drug and pharmaceutical export trend (US$ billion)
Source: DGCI&S, Pharmaceuticals Export Promotion Council, Ministry of Commerce and Industry
India’s pharmaceutical exports are predominantly driven by drug formulations and biologicals, which account for a dominant 75.3% share in FY25, reflecting the country’s strong global position in finished formulations and generic medicines. This is followed by bulk drugs and drug intermediates at 16%, indicating a significant contribution from upstream manufacturing. Smaller segments include surgicals (4.0%), Ayush and herbal products (2.5%), and vaccines (2.3%), highlighting niche but growing areas within the export basket. Overall, the export composition underscores India’s strength in high value finished formulations, supported by a diversified but relatively smaller contribution from other pharmaceutical segments.
India’s share of pharmaceuticals and drugs in the global market is 5.71%. Formulations and Biologics constituted the major portion of India’s exports with a share of 79.26% followed by drug intermediates and bulk drugs with a share of 16.08%.
In FY26 (April-December 2025), the exports of drugs and pharmaceuticals stood at US$ 20.79 billion. During FY25 the exports of drugs and pharmaceuticals stood at US$ 24.57 billion. In FY24, the exports of drugs and pharmaceuticals stood at US$ 22.10 billion (This data is derived from HSN Code: 30). This robust performance was achieved despite the global supply chain disruptions, lockdowns, and subdued manufacturing. The USA, the UK, South Africa, and France were India’s top five export destinations in FY25. India played a key role during the COVID-19 pandemic and demonstrated its ability to be a consistent and reliable pharma supplier to the world even during times of crisis.
India has the highest number of United States Food and Drug Administration (USFDA) compliant companies with plants outside of the USA. About eight out of 20 global generic companies are from India and over 55% of the exports from the country are to the highly regulated markets. As the country is the biggest vaccine exporter, about 65-70% of the World Health Organization (WHO) vaccine requirements are sourced from India.
Export Destinations
The export destination analysis is based on the combined value of AYUSH & herbal products, bulk drugs/drug intermediates, drug formulations & biologicals, and surgicals. In FY26, the total export value across these categories stood at approximately US$ 31.11 billion. The United States remained the dominant export destination, with exports valued at US$ 9.46 billion (30.42%), reflecting its strong demand for Indian pharmaceutical and healthcare products. It was followed by Brazil at US$ 916.06 million (2.94%) and the UK at US$ 902.95 million (2.90%), highlighting steady demand across both emerging and developed markets.
Other key export destinations included France at US$ 785.12 million (2.52%), and the Netherlands at US$ 756.28 million (2.43%). Additionally, countries such as South Africa (US$ 751.18 million; 2.41%), Nigeria at US$ 727.23 million (2.34%), Germany (US$ 639.02 billion; 2.05%), and Canada (US$ 629.40 million; 2.02%) also contributed significantly.
India’s country-wise share of Ayush, bulk drugs, drug formulations and surgicals exports FY26
Source: DGCI&S, Pharmaceuticals Export Promotion Council, Ministry of Commerce and Industry
The distribution indicates a well-diversified export base, with India maintaining a strong presence across regulated markets like the US and Europe, while also expanding in high-growth regions such as Africa and Latin America.
India exports pharmaceutical products to North America, Africa, the EU, ASEAN, Latin America & Caribbean (LAC), the Middle East, Asia, CIS, and other European regions. During FY25, India has exported to over 200 countries across the world. Around 50% India’s exports are to highly regulated markets like North America and Europe. The top five export destinations for Indian Pharma Industry in FY25 were the USA, UK, Brazil, France and South Africa.
Government Initiatives
India’s pharmaceutical exports continue to show strong growth momentum, supported by active government–industry collaboration and export promotion initiatives. High-level engagements between the Pharmaceutical Export Promotion Council of India (Pharmexcil) and the Government of India have focused on aligning policies, identifying growth opportunities and strengthening export strategies, particularly for MSMEs, reflecting a coordinated push to expand India’s global pharma footprint. At the policy level, India’s pharmaceutical exports reached US$30.47 billion in 2024–25, registering a 9.4% growth, driven by a strong manufacturing base and expanding global outreach, with exports reaching over 200 countries and supported by government efforts in regulatory strengthening, trade facilitation and export promotion initiatives led by Pharmexcil.
The Government of India has set up several schemes to further strengthen the pharmaceutical industry. The Strengthening of Pharmaceutical Industry (SPI) scheme focuses on bolstering the existing infrastructure facility, with a total financial outlay of Rs. 500 crore (US$ 64.5 million).
The Production Linked Incentive (PLI) scheme supports domestic manufacturing of 41 critical pharmaceutical ingredients with a total outlay of Rs. 6,940 crore (US$ 834 million) until 2029-30. As of June 2025, 48 projects have been approved, with actual investments reaching Rs. 4,709 crore (US$ 567 million), surpassing the committed Rs. 3,938.5 crore (US$ 443 million). 27 projects have been commissioned, with Rs. 3,063 crore (US$ 368 million) grounded investment and 2,777 jobs
Production Linked Incentive (PLI) schemes for pharmaceuticals, a critical key starting material (KSMs), medical devices, bulk drug parks, etc. are introduced to encourage manufacturers. Through the PLI scheme, the Government of India hopes to increase investment and production in the Indian pharmaceutical sector. The scheme is expected to generate incremental sales of Rs. 2,94,000 crore (US$ 37.09 billion) in six years, starting from 2022-23 to 2027-28.
For the promotion of the Indian pharmaceutical industry, the Pharmaceutical Promotion and Development Scheme (PPDS) was introduced in 2017 with financial support for conducting seminars, conferences, exhibitions and delegations.
Pharmaceutical Technology Upgradation Assistance Scheme (PTUAS) was implemented to facilitate small and medium-sized enterprises (SMEs) to attain WHO-GMP norms. This will enable them to compete on a global scale.
The Pradhan Mantri Bhartiya Janaushadhi Pariyojana’ (PMBJP), was originally launched in 2008 as the “Jan Aushadhi Scheme”. This scheme aims to make quality affordable generic medicines available to all.
Governing Body
Pharmaceutical Export Promotion Council of India (Pharmexcil)
The Pharmaceuticals Export Promotion Council of India (Pharmexcil) is the apex export promotion body established by the Ministry of Commerce & Industry in 2004 to promote India’s pharmaceutical exports globally. It acts as a key facilitator between the government and the pharma industry by supporting exporters through policy advocacy, regulatory guidance, and market intelligence, while also advising the government on export-related issues. The council organizes international exhibitions, seminars, buyer–seller meets, and trade delegations in India and abroad to enhance global market access. It covers a wide range of products including bulk drugs, formulations, biologics, nutraceuticals, and traditional medicines, and assists members with certifications, incentives, and Market Access Initiative (MAI) claims, thereby strengthening India’s position in the global pharmaceutical market.
Department of Pharmaceuticals
The Department of Pharmaceuticals (DoP) under the Ministry of Chemicals and Fertilizers, Government of India was established in 2008 to drive the growth and development of India’s pharmaceutical sector. It is responsible for policy formulation, planning, regulation, and promotion of the industry, with a strong focus on ensuring the availability of quality medicines at affordable prices, supporting research and development, and strengthening domestic manufacturing. The department also oversees key initiatives such as drug price regulation, promotion of bulk drug and medical device production, and schemes like affordable generic medicines and PLI programs. In addition, it is responsible for the functioning of Central Pharma Undertakings, formulation and monitoring of schemes, budget planning and expenditure, and development of human resources and infrastructure. Its broader vision is to position India as a global leader in providing high-quality, cost-effective medicines, while fostering innovation, education, and sustainable industry growth.
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