India’s Pharmaceutical Exports Rise 4.9% to $16.14 Billion as European and Asian Markets Expand

India’s pharmaceutical exports increased by 4.90% year-on-year to US$16.14 billion during the first half of the financial year 2026–27, reflecting continued international demand for Indian medicines, pharmaceutical formulations, biological products and active pharmaceutical ingredients. Stronger exports to Europe, Southeast Asia, Latin America and Africa helped sustain the industry’s growth despite weaker shipments to the United States.

According to data released by the Pharmaceuticals Export Promotion Council of India (Pharmexcil) on 29 October 2026, India’s pharmaceutical exports reached US$16,135.93 million during April–September 2026, compared with US$15,382.85 million during the corresponding period of the previous financial year.

The increase highlights the growing geographical diversification of India’s pharmaceutical exports, with manufacturers expanding their presence in international markets beyond the United States, traditionally the country’s largest destination for pharmaceutical shipments.

The latest figures also demonstrate the importance of India’s domestic pharmaceutical manufacturing capabilities, particularly in drug formulations, biological products, bulk drugs, pharmaceutical intermediates and surgical products.

European Markets Emerge as Major Growth Drivers

Europe emerged as an important contributor to India’s pharmaceutical export growth during the first six months of FY2026–27, with shipments to the region increasing by 9.66% year-on-year.

According to Pharmexcil, pharmaceutical exports to Europe reached approximately US$3.29 billion, accounting for 20.38% of India’s total pharmaceutical exports during the period. The figures indicate that more than one-fifth of India’s pharmaceutical export earnings came from European markets.

Several major European countries recorded substantial increases in their imports of Indian pharmaceutical products. Exports to Germany grew by 21.57%, while shipments to the Netherlands increased by 15.93%. France also recorded growth of 15.02%, reflecting expanding opportunities for Indian pharmaceutical manufacturers in established European healthcare markets.

The growth is significant because European pharmaceutical markets operate under stringent quality, safety and regulatory requirements. Indian manufacturers seeking to expand their presence in these countries must maintain manufacturing standards and comply with the regulatory frameworks governing the registration and distribution of medicines.

The increasing contribution of European markets also provides Indian pharmaceutical companies with opportunities to diversify their international operations and strengthen commercial relationships with overseas healthcare distributors, pharmaceutical companies and regulatory-compliant manufacturing partners.

Pharmexcil has identified Europe as an important market for the future development of India’s pharmaceutical export industry, particularly in advanced products such as complex generics, biosimilars and specialised therapies.

ASEAN Countries Record Strong Pharmaceutical Export Growth

The Association of Southeast Asian Nations emerged as another important growth region for Indian pharmaceutical exports, with shipments increasing by 21.54% during April–September 2026.

The increase was substantially higher than India’s overall pharmaceutical export growth rate of 4.90%, demonstrating the expanding contribution of Southeast Asian markets to the industry’s international business.

ASEAN countries represent a diverse group of healthcare markets with different regulatory systems, pharmaceutical manufacturing capabilities and medical requirements. The region includes economies with established pharmaceutical industries as well as countries that depend on imported medicines and healthcare products.

Indian pharmaceutical manufacturers have opportunities to serve these markets through exports of generic medicines, pharmaceutical formulations, active pharmaceutical ingredients and other healthcare products.

The strong growth recorded during the first half of the financial year indicates that Southeast Asia is becoming an increasingly important component of India’s pharmaceutical export diversification.

Expansion in the region could also support longer-term commercial partnerships involving pharmaceutical distribution, manufacturing cooperation and regulatory collaboration.

Latin America and Africa Contribute to Export Expansion

Indian pharmaceutical exports to Latin America and the Caribbean increased by 16.58% during the first half of FY2026–27, providing another significant contribution to the industry’s overall growth.

The region represents an important market for affordable generic medicines and pharmaceutical products, with Indian manufacturers supplying medicines across several therapeutic categories.

The increase in shipments indicates growing opportunities for Indian pharmaceutical companies to strengthen their presence in Latin American healthcare markets and develop additional relationships with international distributors and pharmaceutical buyers.

Africa also recorded positive growth, with pharmaceutical exports from India increasing by 6.48% during the six-month period.

Indian pharmaceutical companies have an established presence in African markets, where the availability of affordable medicines remains important for public healthcare systems and private medical providers.

The expansion of exports across Latin America and Africa demonstrates how Indian pharmaceutical manufacturers are developing a broader international customer base.

For the industry, greater geographical diversification can help reduce exposure to fluctuations in individual markets and provide additional opportunities for long-term export growth.

Pharmaceutical Exports Grow Despite Moderation in US Market

The expansion of Indian pharmaceutical exports across Europe, ASEAN, Latin America and Africa helped offset weaker shipments to the United States during the first half of FY2026–27.

The United States remains an important destination for Indian pharmaceutical manufacturers, particularly those producing generic medicines, specialised formulations and regulated pharmaceutical products.

However, Pharmexcil reported that exports to the American market moderated during April–September 2026.

The export promotion council did not provide a separate United States export figure in the principal announcement, making it important to distinguish the reported moderation from any independently established percentage decline.

The United States pharmaceutical market is highly competitive, with manufacturers facing pricing pressures, regulatory requirements and changing demand patterns.

For Indian pharmaceutical companies, expanding into additional international markets provides opportunities to diversify revenue sources while continuing to participate in established markets such as the United States.

The latest figures suggest that growth in other geographical regions played an important role in sustaining India’s overall pharmaceutical export performance during the period.

Drug Formulations and Biologicals Dominate Export Basket

Drug formulations and biological products continued to account for the largest share of India’s pharmaceutical exports during the first half of FY2026–27.

According to Pharmexcil, these products represented 73.84% of total pharmaceutical exports and recorded year-on-year growth of 3.81%.

Drug formulations include finished pharmaceutical products manufactured in forms suitable for administration to patients, including tablets, capsules, injections and other medicinal preparations.

Biological products include medicines derived from biological sources or manufactured through specialised biotechnology processes.

The substantial contribution of formulations and biologicals reflects India’s established capabilities in producing and exporting finished pharmaceutical products for international healthcare markets.

The sector’s export performance also highlights the importance of manufacturing quality, regulatory compliance and reliable pharmaceutical supply chains.

As global demand for affordable medicines continues, Indian manufacturers have opportunities to strengthen their presence in international markets through improved products, manufacturing capabilities and specialised drug development.

Bulk Drugs and Pharmaceutical Intermediates Record Double-Digit Growth

Bulk drugs and drug intermediates emerged as another strong-performing segment of India’s pharmaceutical export industry, recording growth of 12.07% during April–September 2026.

Bulk drugs, also known as active pharmaceutical ingredients, are the biologically active substances responsible for the therapeutic effects of medicines. Pharmaceutical intermediates are chemical compounds used during the manufacturing processes required to produce these active ingredients.

The production of bulk drugs and intermediates requires specialised chemical engineering, industrial infrastructure and manufacturing capabilities.

India possesses an extensive pharmaceutical manufacturing ecosystem that includes companies engaged in active pharmaceutical ingredient production, chemical synthesis, fermentation technologies and related industrial processes.

The double-digit increase in exports indicates growing international demand for pharmaceutical ingredients and manufacturing inputs supplied by Indian companies.

Pharmexcil Vice Chairman Bhavin Mehta highlighted the sector’s manufacturing capabilities and the importance of continued investment in quality systems, advanced manufacturing technologies and regulatory preparedness.

The performance of bulk drugs and intermediates is particularly relevant to India’s efforts to strengthen domestic pharmaceutical manufacturing and increase participation in international pharmaceutical supply chains.

Surgical Product Exports Increase by 9.53%

India’s surgical product exports also recorded positive growth during the first half of the financial year, increasing by 9.53% compared with the corresponding period of FY2025–26.

Surgical products form an important segment of the broader healthcare manufacturing ecosystem, supporting hospitals, medical institutions and healthcare providers in international markets.

Growth in this category reflects demand for healthcare-related products manufactured and exported by Indian companies.

The expansion also demonstrates that India’s pharmaceutical export basket extends beyond conventional medicines and active pharmaceutical ingredients to include other specialised healthcare products.

The development is relevant to India’s wider efforts to strengthen medical manufacturing capabilities and increase the international competitiveness of domestically produced healthcare equipment and supplies.

Second-Quarter Exports Reach $8.04 Billion

India’s pharmaceutical export performance remained positive during the second quarter of FY2026–27, covering July to September 2026.

According to Pharmexcil, pharmaceutical exports during the quarter increased by 3.05% year-on-year to approximately US$8.04 billion, compared with US$7.80 billion during the corresponding quarter of the previous financial year.

September recorded the highest monthly pharmaceutical export value during the first half of the financial year.

Exports during September 2026 reached approximately US$2.74 billion, representing growth of 4.68% compared with September 2025.

The quarterly figures demonstrate that India’s pharmaceutical industry maintained export growth during the July–September period, although the rate was lower than the overall growth recorded during the first six months of the financial year.

The positive performance across multiple international markets contributed to the industry’s export expansion despite moderation in shipments to the United States.

Pharmexcil Calls for Greater Investment in Pharmaceutical Innovation

Alongside the latest export figures, Pharmexcil emphasised the need for India’s pharmaceutical industry to move towards higher-value products and advanced drug development.

Pharmexcil Chairman Namit Joshi highlighted India’s established international reputation for manufacturing affordable medicines and supplying pharmaceutical products at scale.

He stated that the next phase of the industry’s development should involve greater participation in pharmaceutical innovation rather than relying exclusively on conventional manufacturing and supply activities.

This transition would require increased investment in research and development, technology transfer and collaborative development of complex medicines.

Particular areas of opportunity include complex generic drugs, biosimilars and specialised therapies, which require advanced scientific expertise, sophisticated manufacturing technologies and rigorous regulatory compliance.

Complex generics are pharmaceutical products that involve additional technical or regulatory challenges compared with conventional generic medicines. Biosimilars are biological medicines developed to be highly similar to existing approved reference biological products.

The development of these products requires specialised research capabilities and advanced manufacturing infrastructure.

Pharmexcil identified Europe as a potentially important partner in this transition because of its established pharmaceutical research institutions, biotechnology companies and innovation ecosystem.

Greater collaboration between Indian pharmaceutical manufacturers and international research organisations could help expand India’s participation in higher-value pharmaceutical development and manufacturing.

Strengthening India’s Position in Global Pharmaceutical Supply Chains

The latest export performance highlights the importance of India’s pharmaceutical manufacturing infrastructure within international healthcare supply chains.

Indian companies manufacture a wide range of pharmaceutical products, including generic medicines, biological products, active pharmaceutical ingredients and specialised formulations.

Their participation in international markets depends on manufacturing capabilities, product quality, regulatory compliance and the ability to supply medicines consistently.

The expansion of exports to Europe, ASEAN, Latin America and Africa demonstrates the opportunities available to Indian manufacturers across different healthcare markets.

However, sustaining this growth will require continued investment in manufacturing technology, product development and quality-assurance systems.

Regulatory preparedness is particularly important for companies seeking to enter highly regulated international pharmaceutical markets.

Pharmexcil has also highlighted the importance of supporting micro, small and medium enterprises within the pharmaceutical manufacturing ecosystem.

Smaller manufacturers can contribute to the industry’s international competitiveness through specialised products, industrial services and participation in established pharmaceutical supply chains.

Strengthening these capabilities could allow a wider range of Indian companies to participate in international pharmaceutical trade.

Building a More Diversified and Innovation-Driven Pharmaceutical Industry

India’s pharmaceutical exports reaching US$16.14 billion during the first half of FY2026–27 represents continued growth for one of the country’s important manufacturing and export industries.

The increase was supported by stronger shipments to Europe, ASEAN, Latin America and Africa, demonstrating the value of geographical diversification in sustaining export performance.

The growth of bulk drugs, pharmaceutical intermediates and surgical products also reflects the breadth of India’s healthcare manufacturing capabilities.

At the same time, the industry faces the challenge of developing higher-value products and expanding its participation in advanced pharmaceutical technologies.

Greater investment in biotechnology, complex generics, biosimilars and specialised therapies could create opportunities for Indian companies to strengthen their positions within international pharmaceutical markets.

The latest Pharmexcil figures demonstrate that India’s pharmaceutical export industry is continuing to expand beyond its traditional markets while maintaining its established strengths in affordable medicines and large-scale manufacturing.

The next stage of growth will depend on how successfully Indian pharmaceutical manufacturers combine these existing capabilities with advanced research, technological innovation and stronger international partnerships.

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References

1. Pharmaceuticals Export Promotion Council of India (Pharmexcil)

Title: India’s Pharmaceutical Export Performance During April–September 2026

Data released: 29 October 2026

The export figures cover India’s pharmaceutical shipments during the first half of FY2026–27, including regional export growth, major product categories and industry performance.

Official website:

https://pharmexcil.com

2. Business Standard

Title: India’s Pharma Exports Grow 4.9% to $16.14 Billion in H1FY27 on Europe Gains

Published: 29 October 2026

Source:

https://www.business-standard.com/industry/news/india-s-pharma-exports-grow-4-9-to-16-14-bn-in-h1fy27-on-europe-gains-126102901550_1.html

3. The Economic Times

Title: India’s Pharma Exports Rise 4.9% to $16.14 Billion in H1; Shipments to Europe Up Nearly 10%: Pharmexcil

Published: 29 October 2026

Source:

https://economictimes.indiatimes.com/industry/healthcare/biotech/pharmaceuticals/indias-pharma-exports-rise-4-9-to-usd-16-14-bn-in-h1-shipments-to-europe-up-nearly-10-pharmexcil/articleshow/135321960.cms

4. Moneycontrol / Press Trust of India

Title: India’s Pharma Exports Rise 4.9% to $16.14 Billion in H1; Shipments to Europe Up Nearly 10%: Pharmexcil

Published: 29 October 2026

Source:

https://www.moneycontrol.com/news/india/india-s-pharma-exports-rise-4-9-pc-to-usd-16-14-bn-in-h1-shipments-to-europe-up-nearly-10-pc-pharmexcil-14063860.html

5. Department of Pharmaceuticals, Government of India

Official information about India’s pharmaceutical manufacturing industry, production capabilities and government initiatives.

https://pharma-dept.gov.in

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