Introduction
India has emerged as a key global supplier of pharmaceuticals, with a strong presence in generic medicines, formulations, biologicals and bulk drugs. During Q1 FY27 (April–June 2026), pharmaceutical exports stood at US$ 8.10 billion, registering 6.8% year-on-year growth. Formulations and biologicals accounted for the largest share of India’s pharmaceutical exports at 79.26% in FY26, followed by drug intermediates and bulk drugs at 16.08%. India exported pharmaceutical products to more than 200 countries, with the USA, the UK, Canada, South Africa and Germany emerging as the top five export destinations in Q1 FY27. The sector benefits from cost competitiveness, a skilled workforce, established manufacturing capabilities and a strong presence in highly regulated markets, contributing significantly to India’s export earnings and strengthening its position as a reliable global supplier of medicines. India plays an important role in the global pharmaceuticals and vaccine industry.
India’s category-wise export share (Q1 FY27)
Source: Pharmaceuticals Export Promotion Council, Ministry of Commerce
It is the largest provider of generic medicines globally. The country has a share of 20% in the global supply volume and contributes to around 60% of the global vaccines. Key segments of the Indian pharmaceutical industry are OTC medicines, Generics, APIs, Vaccines, Biosimilars, and Custom Research Manufacturing (CRM).
India is a global leader in the supply of vaccines such as Diphtheria, Tetanus and Pertussis (DPT), Bacillus Calmette-Guérin (BCG) and measles vaccines. Indian manufacturers provide around 60% of vaccine supplies to UNICEF, meet 40–70% of global demand for DPT and BCG vaccines, and account for around 90% of the World Health Organization’s measles vaccine demand. India also hosts the highest number of US FDA-approved pharmaceutical manufacturing plants outside the US, reinforcing its position as a major supplier to highly regulated global markets.
India majorly exports drug formulations and biologicals, which accounted for 79.26% of the country’s pharmaceutical exports in FY26, making them the largest category in India’s pharmaceutical export basket.
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 comprise a diverse range of products, with Ayush and Herbal Products accounting for 3.67% of the export basket in Q1 FY27. This was followed by Diloxanide furoate, Cimetidine, Oxyclozanide and Famotidine at 3.67%, while antihepertensive drugs accounted for 2.94%. Anticancer drugs contributed 2.67%, and nonsteroidal anti-inflammatory, analgesics and antipyretic drugs accounted for 2.55%. Other pharmaceutical products constituted the largest share at 37.62%, highlighting the broad and diversified nature of India’s pharmaceutical export basket.
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. In FY26, exports of drugs and pharmaceuticals stood at US$ 31.13 billion, compared with US$ 30.47 billion in FY25 and US$ 27.85 billion in FY24.
During April–June FY27, exports stood at US$ 8.10 billion. This robust performance was sustained in Q1 FY27 (April–June 2026), with the USA, the UK, Canada, South Africa and Germany emerging as India’s top five pharmaceutical export destinations. 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 Q1 FY27, the United States of America remained the largest export destination, with exports valued at US$ 1.36 billion (44.61%), followed by the United Kingdom at US$ 108.26 million (3.55%) and Canada at US$ 104.31 million (3.42%).
Other significant destinations included South Africa (US$ 72.19 million; 2.37%), Germany (US$ 71.27 million; 2.34%), the Netherlands (US$ 69.95 million; 2.30%), Australia (US$ 59.83 million; 1.96%), Brazil (US$ 57.92 million; 1.90%), Nigeria (US$ 57.89 million; 1.90%) and France (US$ 54.01 million; 1.77%). Exports were diversified across developed and emerging markets, with countries across North America, Europe, Africa, Latin America and Asia contributing to India’s pharmaceutical exports.
India’s country-wise share of Ayush, bulk drugs, drug formulations and surgicals exports Q1 FY27
Source: DGCI&S, Pharmaceuticals Export Promotion Council, Ministry of Commerce and Industry
Other notable destinations included the Philippines (US$ 53.52 million; 1.76%), Belgium (US$ 51.41 million; 1.69%), Malta (US$ 40.54 million; 1.33%), the United Republic of Tanzania (US$ 39.07 million; 1.28%), Russia (US$ 34.72 million; 1.14%), Kenya (US$ 33.98 million; 1.12%) and Myanmar (US$ 31.06 million; 1.02%). India also exported pharmaceutical products to several other markets, including Sri Lanka, Chile, Mexico, Poland, Ghana, Colombia, Slovenia, Thailand, Türkiye, Spain and Nepal, reflecting the broad geographical reach of the industry.
Government Initiatives
India’s pharmaceutical exports continue to demonstrate resilience, supported by active government–industry collaboration and export promotion initiatives. In April 2026, the Department of Commerce and Pharmexcil organised a Chintan Shivir to strengthen the pharmaceutical sector and support export growth. India’s drugs and pharmaceutical exports reached US$ 31.12 billion in FY26, registering a 2.16% increase over FY25, with exports reaching 191 countries. In Q1 FY27 (April–June 2026), pharmaceutical exports grew 6.8% year-on-year to US$8.10 billion, supported by continued demand for drug formulations and biologicals, bulk drugs and drug intermediates, vaccines and surgical products.
The Government of India implemented the Strengthening of Pharmaceutical Industry (SPI) scheme to strengthen existing pharmaceutical clusters and support pharmaceutical MSMEs. The scheme had a total financial outlay of Rs. 464.6 crore (US$ 56.58 million) for FY22–FY26 and focused on strengthening common infrastructure, upgrading technology and promoting the development of the pharmaceutical and medical devices sectors. The scheme comprised three sub-schemes: Assistance to Pharmaceutical Industry for Common Facilities (API-CF), Revamped Pharmaceutical Technology Upgradation Assistance Scheme (RPTUAS) and Pharmaceutical & Medical Devices Promotion and Development Scheme (PMPDS).
The Production Linked Incentive (PLI) scheme supports domestic manufacturing of 41 critical pharmaceutical ingredients with a total outlay of Rs. 7,920.4 crore (US$ 834 million) until 2029-30. As of March 2026, 48 projects have been approved under the scheme, with committed investment of Rs. 4,329.6 crore (US$ 489.94 million) and actual investment of Rs. 5,447.2 crore (US$ 573.58 million). 38 projects have been commissioned, creating manufacturing capacity of approximately 56,800 tonnes per annum across 28 critical products. The scheme has also generated 5,226 jobs as of March 2026.
Production Linked Incentive (PLI) schemes for pharmaceuticals, critical Key Starting Materials (KSMs), medical devices and bulk drug parks have been introduced to encourage domestic manufacturing and investment. The pharmaceutical PLI scheme aims to increase investment and production in the Indian pharmaceutical sector. The scheme was designed to generate incremental sales of Rs. 2.87 lakh crore (US$ 33.27 billion) over six years, from FY23 to FY28.
The Department's 2023-24 Annual Report refers to the current sub-scheme as the Pharmaceuticals & Medical Devices Promotion and Development Scheme (PMPDS). During FY24, nine studies were awarded and 14 events/workshops were organised, including India Pharma 2023, India Medical Device 2023 and India MedTech Expo.
The Revamped Pharmaceuticals Technology Upgradation Assistance Scheme (RPTUAS) was introduced in March 2024 to help existing pharmaceutical units upgrade their technological capabilities and comply with Revised Schedule M and WHO-GMP standards. The scheme provides incentives ranging from 10% to 20% of eligible investment, subject to a maximum of Rs. 1 crore, based on the unit's average turnover.
The Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) was launched in November 2008 as the Jan Aushadhi Scheme to make quality generic medicines available at affordable prices. As of March 2026, more than 19,000 Janaushadhi Kendras were operational across India, offering around 2,100 medicines and 300 surgical items. The scheme aims to reduce patients' out-of-pocket expenditure and promote the use of generic medicines.
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 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.
FAQs
Formulations and biologicals account for the largest share of India’s pharmaceutical exports at 79.26% in FY26, followed by drug intermediates and bulk drugs at 16.08%. The pharmaceutical industry also exports vaccines, biosimilars, active pharmaceutical ingredients, surgical products and other medicines to global markets.
India is the world’s largest provider of generic medicines and accounts for around 20% of global supply volume. About eight of the world’s 20 leading generic companies are from India, supporting large-scale Pharma exports through cost competitiveness, established manufacturing capabilities and access to regulated international markets.
Highly regulated markets account for a significant share of India’s pharmaceutical exports, with over 55% of exports going to such markets. In Q1 FY27, the US was the largest destination at US$ 1.36 billion, followed by the UK at US$ 108.26 million and Canada at US$ 104.31 million.
Pharmexcil supports Pharmaceutical Exports through policy advocacy, regulatory guidance, market intelligence and global market-access initiatives. It also organises international exhibitions, seminars, buyer-seller meets and trade delegations, while assisting exporters with certifications, incentives and Market Access Initiative claims.
The provided snapshot does not include state-wise pharmaceutical manufacturing capacity or export values, so it does not identify specific states as major pharmaceutical export hubs. It instead highlights India’s established manufacturing capabilities, skilled workforce and extensive presence in regulated global markets as key industry strengths.
Biosimilars are identified as a key segment of India’s pharmaceutical industry alongside generics, vaccines and active pharmaceutical ingredients. The snapshot highlights India’s broad product portfolio and exports across more than 200 countries, creating opportunities for pharmaceutical manufacturers to serve diverse international markets.
USFDA-compliant manufacturing facilities strengthen India’s ability to supply highly regulated markets. India has the highest number of USFDA-compliant pharmaceutical companies with plants outside the US, while over 55% of its exports go to highly regulated markets, reinforcing the country’s credibility as a global pharmaceutical supplier.
Government initiatives are strengthening domestic manufacturing, technology adoption and export capabilities. The PLI scheme supports 41 critical pharmaceutical ingredients with an outlay of US$ 834 million, while the Strengthening of Pharmaceutical Industry scheme supports clusters, common infrastructure and technology upgrades.
India’s pharmaceutical exports are diversified across Africa, Asia, Latin America, Europe and other emerging markets. In Q1 FY27, notable destinations included Brazil at US$ 57.92 million, Nigeria at US$ 57.89 million, the Philippines at US$ 53.52 million, Tanzania at US$ 39.07 million, Kenya at US$ 33.98 million and Myanmar at US$ 31.06 million.
India’s pharmaceutical export market is supported by strong manufacturing capabilities, a skilled workforce, diversified products and broad global reach. Pharmaceutical exports reached US$ 31.13 billion in FY26 and US$ 8.10 billion in Q1 FY27, with Q1 exports growing 6.8% year-on-year, indicating continued momentum for the pharmaceutical industry.
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