Hyderabad: India’s pharmaceutical exports rose 6.8% to $8.1 billion in the first quarter of financial year 2026-27 (FY27), from $7.58 billion in the corresponding quarter of FY26, on the back of firm overseas demand for formulations, bulk drugs and vaccines, the Pharmaceuticals Export Promotion Council of India (Pharmexcil) said on Wednesday.Exports in June increased a little over 7.1% year-on-year to $2.8 billion, compared with $2.6 billion in June of FY26. Shipments were also 6.86% higher than May’s $2.63 billion, signalling sustained month-on-month momentum at the start of the fiscal year, the apex pharma export promotion body said.Drug formulations and biologicals remained the biggest export category, contributing $5.98 billion and accounting for 73.85% of total pharmaceutical exports. The segment grew 4.14% from the year-earlier period.Bulk drugs and drug intermediates rose 13.84% to $1.36 billion, while vaccine exports climbed 35.68% to $0.39 billion, making them the fastest-growing segment. Surgical product exports advanced 11.95% to $0.21 billion.Pharmexcil said the broad-based increase reflected demand for affordable generic medicines, stronger procurement from regulated and emerging markets, and India’s expanding role as a pharmaceutical manufacturing and export hub.NAFTA, Europe, Africa and Latin America and the Caribbean remained the key regional markets, together accounting for nearly 75% of India’s pharmaceutical exports during the quarter. NAFTA continued to remain the largest regional destination, with a 34.3% share.The United States remained India’s largest country-level market in the April-June 2027 quarter, followed by Brazil, the United Kingdom, the Netherlands and France. The top 25 destinations accounted for nearly 70% of exports, with shipments worth $5.65 billion, up 5.5% from a year earlier.Pharmexcil chairman Namit Joshi said the sector continued to combine scale in established markets with gains across wider geographies. “The US remains our largest export destination, with shipments valued at $2.5 billion and a nearly 31% share,” he said, adding that growth across Europe, Africa, Latin America, ASEAN and South Asia was significant in the current trade environment that is fraught with geopolitical turbulence.Pharmexcil vice chairman Bhavin Mehta said higher exports of vaccines and bulk drugs showed deeper capabilities across the value chain. Sustaining growth would require investments in advanced manufacturing, quality systems, specialised production and regulatory preparedness, along with support for MSMEs to meet global compliance norms.
