New Delhi, June 23: A report released by NITI Aayog on Tuesday highlights that India is one of the largest suppliers of generic medicines globally and a key exporter of vaccines and essential drugs. Despite this, India’s share in global pharmaceutical and active pharmaceutical ingredients (API) exports stands at only 2.8%. With rising global demand, there are significant opportunities for India to expand in this sector.
The report estimates that by 2025, the global demand for pharmaceutical imports and APIs will reach approximately $1.3 trillion, with the demand for APIs alone projected at $261.2 billion.
In the fourth quarter report for the fiscal year 2025-26, it is noted that India’s pharmaceutical industry has become a strategic and crucial pillar of the economy. Its robust manufacturing capability, global competitiveness in generic drugs, and increasing participation in international health supply chains have bolstered its strength.
According to the report, this industry contributes over 1.7% to India’s Gross Domestic Product (GDP), with a 7.2% share in the gross value added (GVA) of the manufacturing sector. It provides employment and livelihoods to approximately 2.7 million people and exports pharmaceutical and API products worth around $35.8 billion.
The report emphasizes that India’s greatest strength lies in the formulation and generic medicines sector. Particularly, India holds a strong position in the export of retail drugs and generic medicines.
India remains competitive in markets with stringent regulatory standards, such as the United States and Europe.
However, the global pharma industry is rapidly shifting towards high-value sectors like biologics, vaccines, immunologicals, and advanced therapeutics. The report indicates that India’s export share in these areas is currently limited, highlighting the need for India to enhance its presence.
NITI Aayog Vice Chairman Ashok Kumar Lahiri stated that India’s trade sector continues to demonstrate resilience and adaptability. He noted that India is the world’s largest supplier of generic medicines and a leading provider of vaccines and essential therapeutic drugs, which strengthens global health security. However, changing demand patterns, stringent regulatory standards, and evolving global supply chains are reshaping the industry landscape.
Lahiri emphasized that while India has developed strong capabilities in generic drugs and formulations, it can further solidify its position as a global pharmaceutical and innovation hub by expanding into high-value sectors and leveraging opportunities from diversifying global supply chains.
The report also mentions that India’s total goods and services trade is expected to reach approximately $1.84 trillion in the fiscal year 2025-26, reflecting India’s growing integration with global markets and the increasing diversity of its export sector.
Lahiri further stated that enhancing export competitiveness, strengthening domestic value addition, and ensuring deeper participation in global value chains will be crucial for achieving the long-term goals of a developed India. These steps will aid India in progressing towards high and inclusive economic growth.
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