India’s pharmaceutical sector successfully surpassed $31 billion in total exports for the fiscal year 2026, even as the industry faced significant global challenges and a sharp year-on-year decline in March.
Official data from the Directorate General of Commercial Intelligence and Statistics (DGCIS) indicate that while exports for the year reached this milestone, shipments in March alone fell by 23.17% from the same period in FY25, to $2,828.6 million from $3,681.7 million.
Industry analysts attribute this slowdown primarily to a weakening in major export destinations, notably the United States and China, where overstocking and shifting import priorities have dampened short-term demand.
Despite these hurdles, the industry saw robust growth in several emerging regions, with exports to Africa rising by 13%, to Oceania by 11.5%, and to Latin America and the Caribbean by 10%. Drug formulations and biologicals continued to anchor the export basket, contributing $23.08 billion and maintaining a 74.2% share of total exports.
Notably, the vaccine segment emerged as a high-growth area, recording a 26.4% increase to reach $1.5 billion, marking it as the fastest-expanding category within the export portfolio. Although the sector is navigating logistical vulnerabilities and price sensitivity in new markets, a 10.6% recovery in March exports over February figures suggests that the worst of the inventory-related slowdown may be easing.
