India's trade rose 5.4 pc to touch $1.84 trillion in Q4 of FY26: NITI Aayog
New Delhi, June 23
India's total merchandise and services trade expanded by 5.4 per cent year-on-year during January-March in the financial year 2025-26 to reach $1.84 trillion, reflecting a stable performance despite the uncertainties in global markets, according to NITI Aayog's latest "Trade Watch Quarterly" released on Tuesday.
Ashok Kumar Lahiri, Vice-Chairman, NITI Aayog, released the report in New Delhi, in the presence of the CEO, NITI Aayog and other senior officials.
India's trade performance in Q4 FY'2025-26 underscored the continued resilience of the external sector, supported by robust growth in services trade. While merchandise exports moderated and imports increased, the composition of trade remained broadly stable, the report states.
Services trade remained a key source of strength, with exports growing by 9. Per cent, outpacing import growth and sustaining a strong services surplus. India retained its position as the world's eighth-largest services exporter in 2025, with services exports recording a CAGR of 10.3 per cent during 2015-2025, significantly above the global average.
Overall, India's total trade reached $1.84 trillion during FY2025-26, with exports growing by 4.2 per cent and imports by 6.5 per cent, highlighting the continued dynamism of India's engagement with the global economy.
The thematic focus of this quarter's edition, 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.
Global pharmaceutical and Active Pharmaceutical Ingredients (APIs) demand is estimated at approximately $1.3 trillion in 2025, while India exported pharmaceutical and API products worth $35.8 billion.
Supported by its strong capabilities in generic medicines, vaccines, and essential drugs, India continues to play an important role in global healthcare supply chains, although its share in global pharmaceutical trade remains modest, indicating significant opportunities for future growth, the report states.
The analysis highlights that India's export strength remains concentrated in formulations, particularly retail medicaments and generic drugs, where it has established a strong presence across global markets.
However, the global pharmaceutical industry is increasingly shifting towards high-value segments such as biologics, immunologicals, and advanced therapeutics, where India's participation remains limited. In APIs, India has strengthened its position in several specialised chemical intermediates and antibiotics, but continues to face dependence on imported raw materials and intermediates, particularly from China, the report further states.
Telangana, Gujarat, and Maharashtra have emerged as the key pillars of India's pharmaceutical industry, driving a significant share of the country's production, exports, and integration into global value chains. Their success is rooted in strong manufacturing ecosystems, cluster-based development, globally competitive firms, and supportive policy frameworks, according to the report.
The analysis highlights that India's pharmaceutical sector is well-positioned to strengthen its role in global value chains, supported by a growing innovation ecosystem, strong manufacturing capabilities, and increasing global demand for medicines and healthcare products. Opportunities exist to expand India's presence in high-value segments such as biologics, biosimilars, and advanced therapeutics, while further strengthening domestic API production and upstream capabilities can enhance supply chain resilience.
Continued investments in R&D, technology, skills, and regulatory efficiency, alongside improved market access in key export destinations, can support higher value addition and reinforce India's position as a leading global pharmaceutical manufacturing and innovation hub.
— IANS
Reader Comments
As someone who works in pharma, this report is spot on. Telangana and Gujarat have built incredible ecosystems. But we really need to move beyond generics into biologics and biosimilars. The world is moving to advanced therapeutics and we're still doing old school compounds. Good that government is taking note. And yes, we need to reduce API dependency on China urgently!
1.84 trillion dollars—not bad at all! But I wish we could focus more on high-value exports instead of just raw materials and generics. The pharmaceutical sector is our crown jewel, but we're leaving money on the table by not dominating in biologics. Also, curious about the services surplus—that's where our real strength lies. Need more policy push for IT and consulting exports.
Interesting read from a global perspective. India's pharma exports at $35.8 billion is remarkable for a developing economy. The CAGR of 10.3% in services exports is outstanding—well above global average. However, the API dependency on China remains a strategic vulnerability. The US and EU are also trying to reduce Chinese dependency, so this is a global challenge. Good analysis overall.
Meh, numbers look good on paper, but ground reality? Small exporters are struggling with compliance costs and logistics. The focus on pharma is fine, but what about our textile sector, leather, handicrafts? They employ millions. And how much of this trade is adding real value to ordinary Indians? Just saying... 🤔 Still, happy to see growth, but need more inclusive policies.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.