India needs to strengthen its position as global pharmaceutical and innovation hub: NITI Aayog
New Delhi, June 23
While India remains one of the world's largest suppliers of generic medicines and a major provider of vaccines and essential drugs, its global export share in pharmaceuticals and Active Pharmaceutical Ingredients remains modest at 2.8 per cent, indicating scope for expansion amid rising global demand for medicines, biologics, and speciality therapeutics, a NITI Aayog report said on Tuesday.
Global pharmaceutical and API import demand is valued at approximately $1.3 trillion, including $261.2 billion in Active Pharmaceutical Ingredients (APIs) for 2025.
"India's pharmaceutical sector has emerged as a strategic pillar of the economy, supported by a strong manufacturing base, global competitiveness in generic medicines, and growing integration into international healthcare supply chains," said the report for Q4 FY26.
The industry contributes over 1.7 per cent to India's GDP, 7.2 per cent of manufacturing GVA, supports approximately 2.7 million livelihoods, and exported pharmaceutical and API products worth nearly $35.8 billion.
According to the report, India's comparative advantage remains concentrated in formulations, particularly retail medicaments and generic drugs, where it remains highly competitive even in regulated markets such as the United States and Europe.
However, the global pharmaceutical landscape has increasingly shifted towards high-value segments such as biologics, vaccines, immunologicals, and advanced therapeutics, where India's export presence remains limited, the report noted.
NITI Aayog Vice Chairman Ashok Kumar Lahiri said that India's trade sector has demonstrated considerable resilience and adaptability.
"India is the world's leading supplier of generic medicines and a major provider of vaccines and essential therapeutics, making an important contribution to global health security. However, changing demand patterns, tighter regulatory standards, and evolving supply chains are reshaping the industry," he mentioned.
While India has established strong capabilities in formulations and generics, expanding into high-value segments and leveraging the ongoing diversification of global supply chains present significant opportunities to strengthen its position as a global pharmaceutical and innovation hub, said Lahiri.
During FY 2025-26, India's total merchandise and services trade reached approximately $1.84 trillion, reflecting the country's expanding integration with global markets and the increasing sophistication of its export basket.
"As India progresses towards its long-term development aspirations, enhancing export competitiveness, raising domestic value addition, and deepening participation in value chains will remain critical to sustaining high and inclusive growth," Lahiri noted.
— IANS
Reader Comments
2.8% global share is honestly quite low for a country with our pharma talent. We need to focus on API self-sufficiency and not just depend on China for raw materials. 'Made in India' should mean 'Made from India' too.
From a global health perspective, India's role in generic medicines has been transformative for millions. But the transition to biologics and advanced therapeutics is crucial for long-term sustainability. The regulatory framework also needs to evolve.
All this is good but ground reality is different. Small pharma companies are struggling with compliance costs and quality standards. We need better infrastructure and skilled manpower first. Arrey, bottom-up approach chahiye! 🇮🇳
Great that NITI Aayog is focusing on this. But let's be honest - our patent laws and IP protection need serious overhaul before we can become a true innovation hub. Foreign companies are still wary of investing in R&D here. Hope the new policies address this.
Having worked with Indian pharma companies, I've seen incredible potential. The industry's adaptability during COVID was remarkable. But the move to biologics requires massive capital and specialized talent. Government-private sector partnerships will be key. 🌏
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