India’s pharma exports may miss $32 bn target

Hyderabad: India's pharma exports are likely to miss the FY26 target of $32 billion because of the West Asia crisis, though they should still exceed FY25 exports of $30.47 billion, Pharmexcil chairman Namit Joshi said at the Pharmexcil Chintan Shivir in Hyderabad.Joshi said the industry had invoiced a record $1.6 billion of exports to the US in March 2025, ahead of US tariffs that took effect in April 2025, compared with the usual monthly average of about $800 million. But in March 2026, the industry would need invoicing of nearly $3.7 billion to meet the FY26 target, which appears unlikely. He said export revenue growth has slowed sharply, with overall growth dropping from 11.6% to 4.5% this year. However, bulk drugs performed better, with growth rising from 2.4% to 4.6%.Pharmexcil director general K Raja Bhanu said that despite tariff wars and the continuing West Asia crisis, pharma exports during April 2025-February 2026 rose 5.6% to nearly $28.3 billion. Growth was driven by formulations, biologicals, vaccines and AYUSH products. He added that the sector, currently valued at about $60 billion, is expected to reach $130 billion by 2030.Commerce secretary Rajesh Agrawal said India's pharma industry is well placed to strengthen its global leadership in a fast-changing geopolitical environment, but it must reduce supply-chain dependence and move toward greater self-reliance. He said India's next phase of growth will depend on moving beyond cost competitiveness and becoming a global benchmark for quality and reliability. He said the industry is well-positioned to shift toward higher-value segments such as biologics and biosimilars and must move from a volume-driven model to a value-driven one if it wants to retain leadership.Agrawal said India has a major opportunity to lead the next wave of pharmaceutical innovation as it moves beyond its legacy in generics. On the govt's role, he said efforts are focused on easing supply-chain stress. He acknowledged that supply disruptions are a major challenge and said the govt is working to diversify LPG sourcing and address the industry's solvent requirements.He said the govt and industry are working closely together and, while the supply chain may not function exactly as before, steps will be taken to ease disruptions so that supplies of essential drugs are not affected.