India’s pharmaceutical exports increased 4.9% year-on-year to approximately $16.14 billion in the first half of FY27, covering April to September 2026, according to data from the Pharmaceuticals Export Promotion Council of India (Pharmexcil). Growth was supported by stronger shipments to Europe, ASEAN and Latin America, helping offset a moderation in exports to the United States.
Europe remained a major destination, with exports rising 9.66% to $3.29 billion. Shipments to ASEAN grew 21.54%, while bulk drugs and pharmaceutical intermediates recorded double-digit growth. The figures highlight India’s expanding export markets, although growth in the second quarter was slower than in the first half overall.
Key Takeaways
- India’s pharmaceutical exports reached $16.14 billion in H1 FY27, up 4.9% from $15.38 billion a year earlier.
- Exports to Europe increased 9.66% to $3.29 billion.
- ASEAN shipments grew 21.54%, while Latin America and the Caribbean increased 16.58%.
- Exports to Africa rose 6.48%.
- Drug formulations and biologicals accounted for 73.84% of total pharmaceutical exports.
- Bulk drugs and intermediates recorded the fastest growth among major product categories, rising 12.07%.
- Shipments to the United States moderated during the period, according to Pharmexcil.
India’s Pharma Exports Reach $16.14 Billion in H1 FY27
India exported pharmaceutical products worth $16.14 billion during April–September 2026, compared with $15.38 billion in the corresponding period of FY26.
The increase reflects continued international demand for Indian medicines, pharmaceutical ingredients and healthcare products. India is a major supplier of affordable generic medicines and has developed manufacturing capabilities across formulations, active pharmaceutical ingredients (APIs), biological products and surgical goods.
According to Pharmexcil, export growth during the first half was supported by demand across several international markets. Europe, ASEAN and Latin America were particularly important contributors.
However, shipments to the United States moderated. Pharmexcil did not publish a specific US export figure in the reported data, making it difficult to quantify the decline.
The performance indicates that diversification across international markets helped India’s pharmaceutical exporters maintain overall growth despite weaker momentum in one of their major destinations.
Europe Becomes a Major Growth Market for Indian Pharmaceutical Exports
Exports to Europe increased 9.66% year-on-year to $3.29 billion during H1 FY27. The region accounted for 20.38% of India’s total pharmaceutical exports, representing more than one-fifth of overseas shipments.
Several major European markets recorded strong growth.
| European market | Export growth in H1 FY27 |
|---|---|
| Germany | 21.57% |
| Netherlands | 15.93% |
| France | 15.02% |
| Europe overall | 9.66% |
The growth in these markets provides opportunities for Indian pharmaceutical companies to expand their presence in established European healthcare markets.
Demand for affordable medicines, including generic drugs, is an important part of the international pharmaceutical business. European healthcare systems also provide opportunities for suppliers of complex generics, biosimilars and specialised therapies.
Pharmexcil Chairman Namit Joshi said the next phase of India’s pharmaceutical export growth should focus on moving up the value chain. He highlighted the importance of research and development, technology transfer and collaboration with international companies.
This could allow Indian pharmaceutical manufacturers to participate in product development and innovation rather than relying primarily on supplying finished medicines and ingredients.
ASEAN and Latin America Drive Export Diversification
Beyond Europe, India’s pharmaceutical exports recorded strong growth in several emerging markets.
ASEAN shipments increased 21.54% during H1 FY27, making the region one of the fastest-growing destinations for Indian pharmaceutical products.
Exports to Latin America and the Caribbean increased 16.58%, while shipments to Africa rose 6.48%.
| Export destination | H1 FY27 growth |
|---|---|
| Europe | 9.66% |
| ASEAN | 21.54% |
| Latin America and the Caribbean | 16.58% |
| Africa | 6.48% |
| United States | Moderated; specific figure not disclosed |
These gains are important because the United States has traditionally been a major destination for Indian pharmaceutical exports.
Expanding into multiple markets can reduce dependence on a single geography and help manufacturers manage changes in pricing, regulation and demand.
However, entering new markets also requires companies to meet different regulatory standards, establish distribution partnerships and compete with established international suppliers.
Bulk Drugs and Pharmaceutical Intermediates Record Double-Digit Growth
The export data also shows differences in performance across product categories.
Drug formulations and biologicals remained India’s largest pharmaceutical export segment, accounting for 73.84% of total shipments. Exports in this category increased 3.81% year-on-year.
Bulk drugs and drug intermediates grew 12.07%, while surgical product exports increased 9.53%.
| Product category | Share of total exports | H1 FY27 growth |
|---|---|---|
| Drug formulations and biologicals | 73.84% | 3.81% |
| Bulk drugs and drug intermediates | Not specified | 12.07% |
| Surgical products | Not specified | 9.53% |
The 12.07% increase in bulk drugs and intermediates is particularly relevant for India’s pharmaceutical manufacturing industry.
Bulk drugs include active pharmaceutical ingredients used to manufacture finished medicines. Drug intermediates are chemical compounds used during the production of APIs.
Strong export growth in these categories indicates demand for Indian-made pharmaceutical inputs, in addition to finished medicines.
Pharmexcil Vice Chairman Bhavin Mehta said the growth in bulk drugs and intermediates reflects the breadth of India’s domestic manufacturing capabilities. He also emphasised the importance of investment in quality systems, advanced manufacturing and regulatory preparedness.
Q2 FY27 Pharma Exports Grow 3.05% to $8.04 Billion
While first-half exports increased 4.9%, growth during the second quarter was comparatively slower.
India’s pharmaceutical exports reached $8.04 billion in July–September 2026, representing a 3.05% increase from $7.80 billion in the corresponding quarter of the previous year.
September recorded the highest monthly export value during the first half, with shipments reaching $2.74 billion.
| Period | Pharmaceutical exports | Year-on-year growth |
|---|---|---|
| H1 FY26 | $15.38 billion | — |
| H1 FY27 | $16.14 billion | 4.90% |
| Q2 FY26 | $7.80 billion | — |
| Q2 FY27 | $8.04 billion | 3.05% |
| September 2025 | $2.62 billion approximately | — |
| September 2026 | $2.74 billion | 4.68% |
The figures show that export growth continued during the July–September quarter, although the quarterly increase was lower than the overall first-half growth rate.
September’s performance provided some support towards the end of the reporting period.
Why India’s Pharmaceutical Export Diversification Matters
The moderation in US shipments makes geographical diversification increasingly important for Indian pharmaceutical companies.
The United States is a major market for Indian generic drug manufacturers. However, exporters face pricing pressure, regulatory requirements and competition in the market.
Expanding sales in Europe, ASEAN, Latin America and Africa can provide additional sources of revenue and reduce exposure to changes in individual markets.
This strategy also creates opportunities for smaller Indian pharmaceutical exporters and manufacturers of APIs and intermediates.
There are several areas where the industry could expand:
- Complex generics: Medicines that are more difficult to develop and manufacture than conventional generic drugs.
- Biosimilars: Biological medicines designed to be highly similar to already approved biological products.
- Specialised therapies: Products targeting specific diseases and treatment requirements.
- Active pharmaceutical ingredients: Key ingredients used in finished medicines.
- Contract development and manufacturing: Partnerships with international companies for research, development and production.
Moving into these areas could help Indian manufacturers increase the value of their exports rather than depending mainly on volume growth.
Challenges Facing India’s Pharmaceutical Export Industry
Despite the positive first-half performance, Indian pharmaceutical exporters continue to face several challenges.
Regulatory compliance: Companies must meet quality and manufacturing standards in every market where their products are sold. Regulatory inspections and compliance requirements can increase operating costs.
Pricing pressure: Generic medicine manufacturers face competition from other suppliers, particularly in established markets such as the United States.
Supply-chain costs: Pharmaceutical production depends on chemicals, solvents, energy and imported raw materials. Changes in these costs can affect manufacturing margins.
Research and development investment: Developing complex generics and biosimilars requires technical expertise, investment and longer development timelines.
Market diversification: Expanding into new regions requires local regulatory approvals, distribution networks and partnerships.
The industry’s ability to address these challenges will influence whether the recent export growth can be sustained.
The Bigger Picture
India’s pharmaceutical exports are becoming increasingly diversified across both geographical markets and product categories. Europe, ASEAN and Latin America helped support growth in H1 FY27 as shipments to the United States moderated.
The faster growth in bulk drugs and intermediates also highlights the importance of India’s manufacturing base beyond finished medicines. However, formulations and biologicals continue to dominate the export basket, accounting for nearly three-quarters of shipments.
The next stage of growth will depend on whether Indian companies can strengthen their research capabilities, improve manufacturing quality and expand into complex generics, biosimilars and specialised therapies.
Looking Ahead
India’s pharmaceutical exporters will need to sustain demand across Europe and emerging markets while addressing slower shipments to the United States. The performance of major European destinations and ASEAN markets will be important indicators of whether geographical diversification can continue supporting export growth.
For the longer term, Pharmexcil’s emphasis on moving up the value chain reflects a broader opportunity for the industry. Greater investment in research and development, advanced manufacturing and international partnerships could help Indian pharmaceutical companies expand beyond supplying affordable medicines and become more involved in global pharmaceutical innovation.
Frequently Asked Questions
1. How much were India’s pharmaceutical exports in H1 FY27?
India’s pharmaceutical exports reached approximately $16.14 billion during April–September 2026, increasing 4.9% compared with $15.38 billion in H1 FY26.
2. How much did India’s pharmaceutical exports to Europe grow?
Exports to Europe increased 9.66% to approximately $3.29 billion during the first half of FY27. Europe accounted for 20.38% of India’s total pharmaceutical exports.
3. Which regions recorded the fastest growth in Indian pharma exports?
ASEAN recorded 21.54% growth, followed by Latin America and the Caribbean at 16.58%, Europe at 9.66% and Africa at 6.48%.
4. Which pharmaceutical product category accounts for the largest share of exports?
Drug formulations and biologicals remained the largest category, accounting for 73.84% of India’s pharmaceutical exports during H1 FY27.
5. How much did bulk drug exports grow in H1 FY27?
Exports of bulk drugs and drug intermediates increased 12.07% year-on-year during the first half of FY27.
6. Why are India’s pharmaceutical exports to the US important?
The United States is a major market for Indian generic medicines. Moderating shipments to the US make it important for Indian exporters to expand their presence in Europe, ASEAN, Latin America and other markets.
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