India needs to strengthen its position as global pharmaceutical, innovation hub: NITI Aayog

NEW DELHI: While India remains one of the world’s largest suppliers of generic medicines and a major provider of vaccines and essential drugs, its global export share in pharmaceuticals and Active Pharmaceutical Ingredients (API) remains modest at 2.8 per cent, indicating scope for expansion amid rising global demand for medicines, biologics, and speciality therapeutics, a NITI Aayog report said on Tuesday.

Global pharmaceutical and API import demand is valued at approximately $1.3 trillion, including $261.2 billion in Active Pharmaceutical Ingredients (APIs) for 2025.  “India’s pharmaceutical sector has emerged as a strategic pillar of the economy, supported by a strong manufacturing base, global competitiveness in generic medicines, and growing integration into international healthcare supply chains,” said the report for Q4 FY26. The industry contributes over 1.7 per cent to India’s GDP, 7.2 per cent of manufacturing GVA, supports approximately 2.7 million livelihoods, and exported pharmaceutical and API products worth nearly $35.8 billion. According to the report, India’s comparative advantage remains concentrated in formulations, particularly retail medicaments and generic drugs, where it remains highly competitive even in regulated markets such as the United States and Europe. However, the global pharmaceutical landscape has increasingly shifted towards high-value segments such as biologics, vaccines, immunologicals, and advanced therapeutics, where India’s export presence remains limited, the report noted. (IANS)

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