India pharma exports up 9.4% in FY25: 2026-27 aim

Why pharma exports are back in focus

India’s pharmaceutical industry is pushing for a faster export growth phase after shipments rose in FY25, while the government is urging the sector to invest more in innovation and R and D. Union Commerce and Industry Minister Piyush Goyal, speaking on June 8 at an industry event, said the sector has “not reached anywhere near its potential”. He framed the next leg of growth as a move beyond India’s long-standing strength as a generics manufacturing base to becoming a global innovation centre in pharmaceuticals. The messaging is aligned with the industry’s stated goal of achieving double-digit export expansion in 2026-27. Taken together, the export data, market size projections, and policy proposals highlight a clear policy-and-industry push to move up the value chain.

FY25 export numbers and the official update

The commerce ministry said India’s pharma exports grew 9.4% in 2024-25 to USD 3,047 crore (USD 30.47 billion). The FY25 print matters because it keeps exports above the USD 3,000 crore mark and provides a base for the industry’s higher ambition over the next two financial years. News reports cited that the industry is targeting double-digit export growth in 2026-27. Separately, the Economic Survey 2025-26 noted that pharma exports have grown at a CAGR of 7% over the last decade from FY15 to FY25. The Survey also pointed to the long-term jump in exports over multiple decades, with exports at USD 3,050 crore (USD 30.5 billion) in 2024-25 versus USD 190 crore (USD 1.9 billion) in 2000-01.

What Piyush Goyal said about the growth model

Goyal’s central argument is that India’s pharma story cannot rely only on scale manufacturing of generics. At the June 8 event, he said the industry can scale rapidly if it moves beyond being a generics hub to a global innovation centre. In a separate stakeholder interaction referenced in his social media post, he said the government and industry are focusing on strengthening regulatory frameworks and accelerating growth. He also reiterated the Centre’s commitment to building a “future-ready, innovation-led” pharma sector that can enhance competitiveness and attract high-quality investments, while continuing to deliver affordable healthcare solutions.

Market size projections: from USD 6,000 crore to USD 13,000 crore

Multiple estimates cited in the reports point to a sharp increase in India’s pharma market size by the end of this decade. The sector is described as currently valued at about USD 6,000 crore (USD 60 billion) and projected to reach USD 13,000 crore (USD 130 billion) by 2030. Another estimate in the same set of reports puts the market at USD 5,500 crore (USD 55 billion) and expanding at over 10% annually, with a trajectory toward USD 10,000 crore-plus (USD 100 billion+) by 2030. In addition, Pharmexcil Chairman Dr Veeramani was cited saying the sector is expected to grow to USD 13,000 crore (USD 130 billion) by 2030 from a current market value of USD 5,500 crore (USD 55 billion). While the exact base value varies across cited sources, the direction is consistent: the industry expects a materially larger domestic market by 2030.

Scale indicators: companies, plants, and global standing

India’s pharma manufacturing footprint remains one of its key structural strengths. The sector ranks 3rd globally by volume and 11th by value, with more than 3,000 companies and 10,500 manufacturing units. These scale indicators explain why India is viewed as a reliable supplier of affordable medicines in many markets, and why export expansion remains a central growth lever. They also underline the challenge raised by the minister: scale alone may not be sufficient to capture higher-value growth without a stronger innovation pipeline.

Domestic turnover and what the Economic Survey highlighted

The Economic Survey 2025-26 said the sector’s annual turnover reached ₹472,000 crore in FY25. Alongside this, it highlighted long-run export growth and cited strong monthly momentum: Drugs and Pharmaceuticals exports rose by about 2.70% from USD 259 crore (USD 2.59 billion) in January 2025 to USD 266 crore (USD 2.66 billion) in January 2026. These datapoints provide context for why the government is foregrounding regulatory reforms and why industry bodies are talking about stepping up growth targets. They also offer a simple takeaway for investors tracking the sector: exports are growing, but the policy narrative is pushing for more value-added output over time.

Policy signals: Biopharma SHAKTI and other programmes

In the Union Budget 2026-27, the government proposed the Biopharma SHAKTI initiative (Strategy for Healthcare Advancement through Knowledge, Technology and Innovation) to position India as a global biopharmaceutical manufacturing hub. The initiative is proposed with a total outlay of ₹10,000 crore over the next five years, aimed at building an ecosystem for domestic production of biologics and biosimilars. In an earlier interaction dated August 18, 2025, Goyal discussed with industry leaders the need to boost R and D and compete better on the global stage. He also referenced schemes such as the Production-Linked Incentive scheme and the Scheme for Strengthening Pharmaceutical Industry, framed around high-value production and exports.

Longer-term export ambition: 2030 and 2047 reference points

Beyond FY25, several long-horizon estimates were cited in the reports. One projection said India’s pharmaceutical exports are expected to offer an approximately USD 35,000 crore (USD 350 billion) opportunity by 2047. Another estimate said the Indian pharma market could approach USD 45,000 crore (USD 450 billion) by 2047, while also noting an opportunity to more than double exports to USD 6,000 to 6,500 crore (USD 60 to 65 billion) by 2030. These figures are not near-term forecasts from the commerce ministry’s FY25 update, but they do show the scale of ambition tied to innovation, higher-value therapies, and broader geographic expansion.

Key numbers at a glance

Market impact: what the FY25 print signals

The FY25 export growth of 9.4% reinforces pharma’s role as a major contributor to India’s merchandise exports. The fact that exports crossed USD 3,000 crore in FY25 supports the industry’s stated intent to push for higher growth in the next two financial years, with a specific target of double-digit expansion in 2026-27. At the same time, the government’s emphasis on innovation-led growth signals that policy attention is shifting toward higher-value segments such as biologics and biosimilars. For listed pharma companies, the narrative highlights two measurable tracks to watch in coming quarters: the export growth rate off the FY25 base and the pace at which policy initiatives translate into investable capacity and product pipelines.

Conclusion

India’s pharma exports rose to USD 3,047 crore in FY25, and the industry is now aiming for double-digit growth by 2026-27. Alongside the export push, Piyush Goyal has reiterated that the sector’s next phase depends on moving beyond generics to innovation-led growth. Market size projections cited across reports point to a rise toward USD 13,000 crore by 2030, while policy proposals such as Biopharma SHAKTI indicate continued government focus on higher-value manufacturing. The next milestones are likely to be shaped by regulatory reforms discussed with stakeholders and the rollout details of proposed programmes referenced in the Budget 2026-27.