India’s Pharma Exports Rise 5.21% in Q1 FY26

India’s pharmaceutical exports registered a 5.21% growth in the first quarter of FY26, reaching USD 7.57 billion, according to data from the Pharmaceuticals Export Promotion Council (Pharmexcil). The growth was primarily driven by formulations and biologics, reinforcing India’s position as a key global healthcare supplier. However, challenges such as pricing pressures in the U.S. market continue to weigh on Indian drug manufacturers.

Export Performance

Quarterly Growth

• Q1 FY26 Exports: USD 7.57 billion
• Q1 FY25 Exports: USD 7.19 billion (approx.)
• Growth: +5.21%

The export momentum follows a strong performance in FY25, where India’s pharma exports rose 9.39% to USD 30.47 billion, compared to USD 27.85 billion in FY24.

Key Export Destinations

NAFTA region (North America) remained a primary market.

Growth was also noted in,

• Oceania
• Latin America
• Africa

Despite global expansion, U.S. pricing pressures continue to impact revenues, especially for major generic drug exporters.

Import Trends

• Rising Imports in Q1 FY26
• Imports: USD 786 million, up 4.21% from Q1 FY25.

Major Imports

• Bulk drugs and intermediaries (46% of total imports).
• Government Push to Reduce Dependency
• A notable declining trend in bulk drug imports reflects efforts under the Production-Linked Incentive (PLI) scheme, aimed at reducing reliance on foreign intermediaries, especially from China.

Industry Insights

Strengthening Global Role

• Namit Joshi, Chairman of Pharmexcil, highlighted that Indian pharma continues to solidify its role in the global healthcare ecosystem, supplying affordable and reliable medicines across continents.

Challenges Ahead

• U.S. market pressures: Intense competition and regulatory pricing curbs affect profitability.
• Tariff uncertainties: Currently, tariffs on drugs are exempt, but any changes could impact export growth.
• Sustainability of growth: Industry leaders remain cautiously optimistic, expecting growth but wary of global economic fluctuations.