India’s pharmaceutical exports rose 6.8% year-on-year to $8.1 billion in the first quarter of FY2026–27, strengthening the country’s position as a major global supplier of medicines despite continuing uncertainty in international markets. Exports stood at $7.58 billion during the corresponding period of the previous financial year.
The latest figures, compiled by the Pharmaceuticals Export Promotion Council of India (Pharmexcil), indicate steady growth across several major product categories. In June alone, pharmaceutical exports increased 7.13% year-on-year to $2.81 billion.
Formulations remain the main export segment
Drug formulations and biological products continued to account for the largest share of India’s pharmaceutical exports. The segment generated approximately $5.98 billion, representing about 73.85% of total pharma exports during the quarter.
Bulk drugs and intermediates contributed around $1.36 billion, registering growth of 13.84%. The performance highlights continued demand for Indian medicines and pharmaceutical inputs across international markets.
Vaccine exports surge
One of the strongest areas of growth was vaccines. India’s vaccine exports jumped 35.68% during the quarter, reflecting stronger overseas demand for Indian-made vaccines.
Surgical products also performed well, with exports increasing 11.95%. The growth across these categories helped offset challenges facing pharmaceutical exporters in some major markets.
India has a particularly strong position in global vaccine supply. The government has previously highlighted that Indian manufacturers provide around 60% of UNICEF’s vaccine supplies and account for a substantial share of global demand for vaccines such as DPT, BCG and measles vaccines.
US remains the largest market
North America remained an important destination for Indian pharmaceutical products, with the US accounting for around $2.5 billion, or 30.89% of total exports, during the quarter.
Other major markets included Brazil, the UK, the Netherlands and France. Collectively, the NAFTA region, Europe, Africa and Latin America accounted for about 75% of India’s pharmaceutical exports.
The concentration of exports across multiple regions provides Indian pharmaceutical companies with a broad international customer base, although the US remains particularly important because of its size and significance to the Indian generic-drug industry.
Global trade challenges remain
The growth comes at a time when pharmaceutical exporters are facing changing trade policies, regulatory requirements and geopolitical uncertainties. The industry is also watching developments in the US market closely because of India’s significant dependence on American demand.
Despite these challenges, the Q1 performance indicates that Indian pharmaceutical companies continue to maintain export momentum. Pharmexcil has stressed the importance of investments in advanced manufacturing, regulatory compliance and innovation to strengthen India’s competitiveness in global markets.
The combination of rising vaccine shipments, growth in bulk drugs and continued demand for formulations has helped India’s pharmaceutical exports begin FY2026–27 on a positive note. If the current momentum is sustained through the remaining quarters, the sector could post another year of strong export performance while further expanding India’s role in global healthcare supply chains.
