India’s Pharma Exports Hit Record $30 Billion in FY25, March Sees 31% Surge

India’s pharmaceutical exports reached an all-time high of $30.47 billion in FY25, surpassing the government’s target and marking a 9.39% year-on-year growth. The milestone was powered by a remarkable 31.21% surge in March alone, as per official trade data.

This is the first time Indian drug and pharmaceutical exports have breached the $30 billion mark. The target for the fiscal year was $29.38 billion, said Raja Bhanu, Director General of the Pharmaceuticals Export Promotion Council (Pharmexcil).

March stood out as a defining month, with exports rising to $3.68 billion from $2.81 billion a year ago. This was the highest monthly performance of the year, followed by January which recorded a 21.47% increase, and May with 10.63% growth. February was the only month that saw a slight contraction of 1.52%.

The sharp rise in exports came despite geopolitical tensions, global economic uncertainty, and ongoing logistical hurdles. Notably, the U.S. — India’s largest pharma market — played a pivotal role once again. A shortage of generic drugs in the U.S. early in the year, followed by concerns over a proposed 26% tariff toward the end of the fiscal, prompted exporters to ramp up shipments. Although pharma products were ultimately excluded from the tariff list, the export momentum remained strong.

Drug formulations and biologicals continued to dominate India’s pharma export basket, contributing over 75% of the total with $20.12 billion in exports, up nearly 9% from the previous year. Bulk drugs and drug intermediates followed at $4.31 billion, marking a modest 1.4% growth.

Vaccine exports, however, dipped by 4.2% to $1.04 billion. On the other hand, exports of surgical products and Ayush and herbal items saw positive growth at 5.16% and 6.17% respectively, with total values standing at $683.47 million and $620.97 million.

Up to February 2025, overall pharma exports had already reached $26.78 billion, reflecting a 6.95% increase compared to the same period last year.

The United States continued to be India’s largest export destination, accounting for more than a third of total pharma exports. Exports to the U.S. rose by 14.29% to $8.95 billion from $7.83 billion in FY24.

Other major markets included the U.K., Brazil, France, and South Africa, which together contributed just under 10.5% of total exports. South Africa remained in the top five despite a 1.78% decline in export value.

Several key markets, however, saw a drop in exports, including the UAE (down 17.7%), Turkey (16%), Sri Lanka (14.6%), the Netherlands (13.79%), China (10.6%), and Belgium (7.37%). Exports to Mexico and Thailand also contracted slightly by 3.8% and 0.14%, respectively.

Region-wise, NAFTA (comprising the U.S., Canada, and Mexico), Europe, Africa, and Latin America & Caribbean (LAC) remained the top four, jointly accounting for 76% of total exports. NAFTA alone contributed 36.6% with exports worth $9.8 billion, registering a 14.06% growth.

However, exports to Africa and North East Asia declined by 1.74% and 4.3% respectively, indicating challenges in certain regional markets.

Also Read: India’s Pharma Market Grows 8.4% in FY25; Cardiac, Gastro & Anti-Diabetic Segments Lead