India’s Pharmaceutical Exports Rise 4.9% to USD 16.14 Billion in First Half of FY27

New Delhi, Oct 30: India’s pharmaceutical exports increased by 4.9 per cent to USD 16.14 billion during the first half of the financial year 2026-27, supported by stronger demand from European countries, Southeast Asia and Latin American markets, even as shipments to the United States moderated.

According to data released by the Pharmaceuticals Export Promotion Council of India (Pharmexcil), pharmaceutical exports stood at USD 16.14 billion during April-September 2026, compared with USD 15.38 billion in the corresponding period of the previous financial year.

The growth highlights the expanding international presence of Indian pharmaceutical manufacturers and their ability to strengthen business relationships across different geographical markets.

The performance also indicates a gradual diversification of India’s pharmaceutical export destinations, with demand from several emerging and developed economies helping offset weaker shipments to the US market.

India is among the world’s major suppliers of affordable medicines, generic drugs, pharmaceutical ingredients and healthcare products. Its manufacturing capabilities and established presence in international markets have made the pharmaceutical industry an important contributor to the country’s merchandise exports.

Europe emerges as a major growth destination

Europe remained one of the strongest markets for Indian pharmaceutical exporters during the first half of FY27.

Exports to the region increased by 9.66 per cent to USD 3.29 billion, accounting for more than one-fifth of India’s total pharmaceutical shipments during the period.

Germany, the Netherlands and France recorded notable growth, reflecting stronger demand for Indian pharmaceutical products across important European markets.

The performance provides Indian manufacturers with opportunities to expand their presence in a region where regulatory standards, quality requirements and competition are significant considerations.

Pharmexcil said the increase in shipments highlighted the opportunities available for Indian exporters to deepen their engagement with European markets.

For domestic companies, Europe represents an important destination for generic medicines, pharmaceutical formulations, active ingredients and specialised healthcare products.

Greater commercial engagement with European pharmaceutical companies could also encourage technology partnerships, contract manufacturing arrangements and research collaborations.

However, expanding in the region will require Indian manufacturers to maintain strict compliance with international quality standards and regulatory requirements.

ASEAN and Latin America record strong growth

Apart from Europe, Southeast Asian markets also contributed significantly to India’s pharmaceutical export performance.

Shipments to the Association of Southeast Asian Nations (ASEAN) increased by 21.54 per cent during the first half of FY27, representing one of the strongest regional growth rates.

The rise reflects increasing demand for medicines and healthcare products across Southeast Asian economies, where expanding healthcare infrastructure and population requirements are creating additional opportunities for pharmaceutical suppliers.

Latin America and the Caribbean also recorded a strong performance, with exports increasing by 16.58 per cent.

Meanwhile, shipments to African markets rose by 6.48 per cent during the same period.

The growth across these regions has helped Indian pharmaceutical exporters reduce their dependence on a limited number of international markets.

Geographical diversification is particularly important for the industry because trade policies, regulatory decisions, pricing conditions and healthcare spending can vary significantly across countries.

By developing a wider customer base, Indian manufacturers can improve their ability to manage market-specific challenges and maintain export growth.

US shipments remain a concern

Despite the positive performance across several regions, exports to the United States moderated during the first half of FY27.

Pharmexcil did not provide detailed figures for the US market but acknowledged the slowdown in shipments.

The development is significant because the United States is one of the most important destinations for Indian pharmaceutical companies, particularly manufacturers of generic medicines.

Indian companies have established a substantial presence in the American pharmaceutical market by supplying affordable medicines and competing with international manufacturers.

Any moderation in shipments can therefore influence the overall export performance of companies with significant exposure to the US.

The industry is also required to navigate regulatory compliance, pricing competition and changes in international trade conditions.

The stronger performance in Europe, ASEAN and Latin America has helped cushion the impact of slower US shipments, demonstrating the importance of expanding business opportunities beyond traditional destinations.

Drug formulations remain the largest export segment

Drug formulations and biological products continued to dominate India’s pharmaceutical export basket during the first half of FY27.

The segment accounted for 73.84 per cent of total pharmaceutical exports, maintaining its position as the industry’s largest product category.

Exports in this segment increased by 3.81 per cent compared with the corresponding period of the previous financial year.

Formulations include finished medicines manufactured in different forms, such as tablets, capsules, injections and other dosage preparations.

Their substantial share reflects India’s established manufacturing capabilities and its role in supplying affordable medicines to international healthcare markets.

Bulk drugs and drug intermediates recorded even stronger growth, increasing by 12.07 per cent during the reporting period.

These products are important components of pharmaceutical manufacturing because they form the basis for producing finished medicines.

The increase in bulk drug exports highlights the breadth of India’s domestic manufacturing capabilities and the growing international demand for pharmaceutical ingredients.

Exports of surgical products also performed positively, recording growth of 9.53 per cent.

The expansion across different product categories suggests that India’s pharmaceutical export base is becoming increasingly diverse.

Second-quarter performance remains positive

During the July-September quarter of FY27, India’s pharmaceutical exports increased by 3.05 per cent to USD 8.04 billion, compared with approximately USD 7.8 billion in the corresponding quarter of the previous year.

September recorded the highest monthly export value during the first half, with shipments reaching approximately USD 2.74 billion.

This represented a year-on-year increase of 4.68 per cent.

The monthly performance provided additional support to the overall first-half growth, although the quarterly expansion remained comparatively moderate.

Industry representatives believe that maintaining export momentum will require companies to strengthen their manufacturing operations, improve product quality and expand their presence in international markets.

The pharmaceutical sector is also facing increasing pressure to move beyond conventional generic medicines and develop more complex and specialised products.

Industry calls for greater investment in innovation

Pharmexcil Chairman Namit Joshi said India’s next phase of pharmaceutical export growth should focus on moving up the value chain.

He emphasised the need for greater investment in research and development, technology transfer and collaborative product development.

The industry is increasingly looking towards complex generics, biosimilars and specialised therapies as areas that could create higher-value business opportunities.

Complex generics are medicines that are more difficult to develop and manufacture than conventional generic products because of their formulation, delivery systems or technical requirements.

Biosimilars are highly similar versions of biological medicines that can provide additional treatment options as patents on original products expire.

Developing these products requires substantial scientific expertise, advanced manufacturing infrastructure and regulatory capabilities.

Greater participation in these segments could help Indian pharmaceutical companies strengthen their global competitiveness and improve their position in international supply chains.

The industry has also emphasised the importance of technology partnerships with international companies to accelerate research and product development.

Quality standards remain essential for global expansion

As Indian pharmaceutical companies expand their international operations, maintaining quality standards will remain a central requirement.

Manufacturers exporting medicines to regulated markets must comply with stringent safety, production and documentation requirements.

Investments in modern manufacturing facilities, quality-control systems and regulatory compliance are therefore important for sustaining international business relationships.

The increasing demand for pharmaceutical products across Europe and other markets also presents an opportunity for domestic manufacturers to expand production capacity.

However, companies will need to manage rising production costs, competitive pricing and changing regulatory expectations.

The ability to maintain consistent product quality while offering competitive prices will remain an important factor in determining their success.

Outlook for the pharmaceutical industry

India’s pharmaceutical export performance during the first half of FY27 reflects steady growth despite a slowdown in shipments to the United States.

The strong performance in Europe, ASEAN and Latin America demonstrates the benefits of geographical diversification and expanding international business relationships.

The rise in exports of bulk drugs, intermediates and surgical products also indicates that growth is not limited to finished medicines.

For the remaining half of the financial year, the industry’s performance will depend on international demand, regulatory developments, manufacturing competitiveness and the ability of companies to expand into higher-value product categories.

Increasing investment in research and development could provide Indian manufacturers with opportunities to strengthen their presence in advanced pharmaceutical segments.

With established manufacturing capabilities and a growing international customer base, India remains well positioned to expand its role in the global pharmaceutical industry.

The latest export figures underline the importance of innovation, quality improvements and market diversification in sustaining the sector’s long-term growth.