India, known for its generic medicines and vaccine production, holds a modest 2.8% share in global pharmaceutical and Active Pharmaceutical Ingredients (API) exports, signaling room for growth. The global demand for pharmaceuticals and APIs is estimated at $1.3 trillion, with $261.2 billion dedicated to APIs by 2025.
The pharmaceutical sector in India plays a vital role in the economy, contributing over 1.7% to the GDP and supporting around 2.7 million jobs. With pharmaceutical and API exports reaching nearly $35.8 billion, India’s strength lies in formulations and generic drugs, where it competes well even in regulated markets like the US and Europe.
Despite its strong foothold in formulations and generics, India faces limited export presence in high-value segments like biologics and vaccines. NITI Aayog Vice Chairman Ashok Kumar Lahiri emphasized the need for India to tap into these segments to enhance its global pharmaceutical standing.
India’s trade sector has shown resilience and adaptability, with a focus on expanding into high-value pharmaceutical segments. Lahiri highlighted the importance of enhancing export competitiveness, increasing domestic value addition, and deepening participation in global value chains for India’s sustained growth.
