India’s Pharmaceutical Exports Hit Record £24 Billion In FY25; Driven By March Surge

India’s pharmaceutical exports surged to an all-time high of $30.47 billion (£24.5 billion approx.) in the financial year 2024–25, marking a 9.39% year-on-year increase, official trade data has revealed.

The figure comfortably surpassed the government’s target of $29.38 billion, according to Raja Bhanu, Director General of the Pharmaceuticals Export Promotion Council of India (Pharmexcil).

This growth was fuelled by an exceptional performance in March, when exports jumped 31.21% year-on-year to $3.68 billion, up from $2.80 billion during the same month last year.

It was the highest monthly performance of the fiscal year.

US Market Key Driver Behind Growth

Despite geopolitical tensions and global economic headwinds, India’s pharma sector navigated the year with resilience, buoyed by strong demand from the United States, its largest export market.

Exports to the US grew 14.29% to $8.95 billion, maintaining the country’s dominance with a share of over one-third of India’s total pharma exports.

Notably, a shortage of generic drugs in the US earlier in the year helped boost shipments.

Later, exporters rushed to capitalise on market opportunities before potential tariffs, threatened by President Donald Trump, took effect.

Though the proposed 26% reciprocal tariff did not include pharmaceuticals and was eventually paused for 90 days, the move contributed to a year-end surge in shipments.

Monthly Export Trends: March Outperforms

The March spike outpaced the next best monthly performance in January, when exports rose 21.47% year-on-year to $2.59 billion.

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May also saw double-digit growth of 10.63%, while February was the only month to record a decline, slipping 1.52%.

Overall, India managed to sustain export momentum despite logistical hurdles and an uncertain global landscape.

Breakdown By Product Category

Although granular March data is pending, export figures from April to February show that drug formulations and biologicals remained the top export category, contributing over 75% of the total with a value of $20.1 billion, a nearly 9% increase year-on-year.

Other key segments included:

• Bulk drugs and intermediates: $4.32 billion (↑1.4%)
• Vaccines: $1.04 billion (↓4.2%)
• Surgicals: $683.47 million (↑5.16%)
• Ayush and Herbal products: $620.97 million (↑6.17%)

Total pharma exports for the April–February period rose 6.95% to $26.79 billion.

Export Destinations: UK, Brazil Among Top Five

Beyond the United States, the United Kingdom, Brazil, France, and South Africa rounded out the top five export destinations, collectively accounting for just over 10% of total exports.

Interestingly, South Africa remained in the top tier despite a 1.78% contraction in export value. Other markets saw steeper declines, including:

• UAE: ↓17.7%
• Turkey: ↓16%
• Sri Lanka: ↓14.6%
• The Netherlands: ↓13.79%
• China: ↓10.6%
• Belgium: ↓7.37%

Key Regions: NAFTA, Europe, Africa Lead

From a regional perspective, NAFTA, Europe, Africa, and Latin America (LAC) collectively accounted for 76% of India’s pharmaceutical exports.

Of these, NAFTA led the pack with a 36.6% share, and exports to the region rose 14.06% to $9.8 billion.

However, exports to Africa declined 1.74%, and those to North East Asia fell 4.3%, highlighting the mixed performance across global markets.

Outlook

India’s record-breaking pharma export performance in FY25 reflects not only its strong manufacturing base but also strategic agility in responding to global market dynamics and regulatory shifts.

As the new fiscal year begins, exporters remain cautiously optimistic, watching global trade policies closely while continuing to explore emerging markets.