India’s pharmaceutical sector has showcased remarkable resilience and growth, clocking exports worth $5 billion in April and May 2025, according to data released by the Pharmaceuticals Export Promotion Council of India (Pharmexcil). This performance highlights sustained global demand for Indian generic drugs, vaccines, and Active Pharmaceutical Ingredients (APIs) amid economic headwinds and geopolitical disruptions.
Key Highlights Of The Export Data
| Month | Pharma Exports ($ Billion) | YoY Growth (%) |
|---|---|---|
| April 2025 | 2.51 | +8.2% |
| May 2025 | 2.49 | +7.9% |
| Total (April-May) | 5.00 | +8.05% |
Pharmexcil Director General Uday Bhaskar confirmed that the growth is driven by high-value generic formulations, oncology drugs, complex injectables, and robust vaccine shipments to Africa, Latin America, and Southeast Asia.
Major Growth Drivers
- Strong US Market Demand:
- The US remained India’s largest export destination, accounting for over 30% of total pharma exports, with continued high-volume orders for oncology, diabetes, and cardiovascular drugs.
- Rising African Orders:
- Nigeria, Kenya, and South Africa showed significant growth in generic imports, driven by cost-effective Indian alternatives.
- Complex Generics & Specialty Drugs:
- Exports of complex injectables, biosimilars, and hormone formulations increased notably, driven by approvals from US FDA and European regulators.
- Vaccine Supplies:
- Vaccine exports surged by 12% YoY, particularly for WHO prequalified vaccines to African and Southeast Asian nations under global health initiatives.
Pharmexcil Official Statement
Pharmexcil DG Uday Bhaskar stated:
“India continues to maintain its position as the Pharmacy of the World with consistent double-digit growth in formulations and specialty segments. Approvals from stringent regulatory authorities and increased global trust are strengthening our export footprint.”
India’s Top Pharma Export Markets (April-May 2025)
| Country/Region | Exports ($ Million) | Share (%) |
|---|---|---|
| United States | 1500 | 30% |
| African Continent | 900 | 18% |
| European Union | 850 | 17% |
| Latin America | 700 | 14% |
| ASEAN | 650 | 13% |
| Others | 400 | 8% |
| Total | 5000 | 100% |
Segment-Wise Export Analysis
| Pharma Segment | Exports ($ Million) | YoY Growth (%) |
|---|---|---|
| Formulations | 3700 | +9% |
| Bulk Drugs & APIs | 950 | +6% |
| Vaccines | 250 | +12% |
| Herbal Products | 100 | +4% |
| Surgicals | 0 | Flat |
The above data shows formulations remain the largest contributor, while vaccine exports recorded the highest growth rate.
Key Industry Trends Driving Exports
- Focus On Complex Generics:
Indian companies such as Sun Pharma, Dr Reddy’s, and Lupin are launching complex generics like inhalers, injectables, and biosimilars in regulated markets. - Increased USFDA Approvals:
Over 200 generic drug approvals were secured by Indian firms in FY25 so far, enhancing market penetration in the US. - API Self-Reliance Push:
Under the Production Linked Incentive (PLI) scheme, India has accelerated domestic API production, reducing dependency on China and strengthening export supply chains. - Growing Africa & LATAM Demand:
Cost competitiveness and WHO GMP approvals are enabling Indian pharma to outpace Chinese and Western competitors in these emerging markets.
Challenges Facing Indian Pharma Exports
Despite robust growth, the sector faces persistent challenges:
- Stringent Global Regulatory Scrutiny: USFDA import alerts or observations impact supply stability and brand credibility.
- Logistics Costs: Rising freight rates post-Red Sea disruptions have marginally increased export costs.
- Price Control Measures Abroad: Policies in markets like the US, UK, and Germany affect margins on generic drugs.
Government’s Strategic Measures
To sustain export momentum, the Ministry of Commerce and Industry along with Pharmexcil are:
- Facilitating faster regulatory clearances through international harmonisation agreements.
- Supporting pharma clusters under the PLI 2.0 scheme to increase competitiveness.
- Organising international pharma exhibitions in Africa, ASEAN, and Latin America to widen market access.
Outlook For FY26
Industry analysts project pharma exports to cross $30 billion by FY26, with a projected CAGR of 8-10% over the next three years. Factors driving this optimism include:
- Enhanced R&D investments by Indian firms in biosimilars and novel drug delivery systems.
- Emerging market growth as governments shift to affordable generic sourcing models post-COVID.
- Steady US and EU demand for life-saving generics and complex injectables.
Expert Views
Dr Ranjit Shahani, Former MD, Novartis India:
“Indian pharma’s strong regulatory compliance, high-volume manufacturing, and cost efficiencies will continue to ensure robust export growth despite global economic volatility.”
Kiran Mazumdar-Shaw, Executive Chairperson, Biocon:
“Biosimilars will be a major export growth driver for India in the next five years as Europe and the US shift towards affordable biologics.”
Conclusion
India’s pharmaceutical export performance of $5 billion in April-May 2025 underscores its rising global dominance as a leading affordable medicines supplier. As the industry navigates regulatory challenges and price controls, strategic government policies, robust manufacturing capabilities, and diversification into specialty drugs are poised to propel Indian pharma towards its $50 billion export target by 2030, fortifying its status as the ‘Pharmacy of the World’.
Disclaimer:
This article is based on data released by Pharmexcil and statements from industry experts. It is intended solely for journalistic and informational purposes. Readers are advised to refer to official Pharmexcil releases and Ministry of Commerce updates for verified export data and policy announcements.
