New Delhi, June 23 (IANS). A NITI Aayog report released on Tuesday said India is one of the largest suppliers of generic medicines in the world and is also a major exporter of vaccines and essential medicines. Despite this, India’s share in global pharmaceutical and active pharmaceutical ingredients (API) exports is only 2.8 per cent. Amidst the increasing global demand, there is a lot of scope for expansion in this sector for India.
According to the report, global pharmaceutical and API import demand is estimated to be around $1.3 trillion in the year 2025, of which the demand for Active Pharmaceutical Ingredients (APIs) alone is $261.2 billion.
The report for the fourth quarter of the financial year 2025-26 states that India’s pharmaceutical industry has become a strategic and important pillar of the economy. Its strong manufacturing capabilities, global competitiveness in generic drugs and growing participation in international healthcare supply chains have strengthened it.
According to the report, this industry contributes more than 1.7 percent to India’s gross domestic product (GDP). Also, its share in the gross value added (GVA) of the manufacturing sector is 7.2 percent. The sector provides employment and livelihood to approximately 27 lakh people and exports pharmaceutical and API products worth approximately $35.8 billion.
The report said that India’s biggest strength is in the field of formulations and generic drugs. India’s position is very strong especially in the export of retail medicines and generic medicines.
India remains competitive even in markets with strict regulatory standards like the US and Europe.
However, the global pharma industry is now increasingly moving towards higher value areas such as biologics, vaccines, immunologicals and advanced therapeutics. According to the report, India’s export share in these sectors is still limited and this is the area where India needs to increase its presence.
NITI Aayog Vice Chairman Ashok Kumar Lahiri said that India’s business sector is continuously demonstrating strength and adaptability.
He said India is the world’s largest supplier of generic drugs and also a major provider of vaccines and essential therapeutics, thereby strengthening global health security. However, changing demand patterns, stringent regulatory standards and evolving global supply chains are changing the face of the industry.
Lahiri said India has developed strong capabilities in generic drugs and formulations, but India can further strengthen itself as a global pharmaceutical and innovation hub by expanding into high-value sectors and taking advantage of opportunities arising from diversification of global supply chains.
According to the report, India’s total goods and services trade is expected to reach approximately $1.84 trillion in FY 2025-26, reflecting India’s growing integration with global markets and increasing diversity of the export sector.
Ashok Kumar Lahiri further said that to achieve the long-term goal of a developed India, it will be important to increase export competitiveness, strengthen domestic value addition and ensure deeper participation in global value chains. These steps will help move India towards higher and inclusive economic growth.
–IANS
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