India Pharma Outlook Team | Tuesday, 05 May 2026
India’s Pharma Industry exports surpassed USD 31 billion in FY26, as per official data, even as shipments witnessed a steep decline in March due to global tensions.
Exports in March fell over 23 per cent year-on-year as per official data. This decrease in exports of the India’s Pharma Industry is attributed to the sharp slowdown in The United States and China, India’s top largest export destinations. Shipments to the US saw a fall of 10 percent, while exports to China declined by 11.54 percent.
According to, the Directorate General Intelligence and Statistics (DGCIS), “When compared to exports in March FY25 (USD 3,681.7 million) during last fiscal, exports in March FY26 (USD 2,828.6 million) have declined by 23.17 per cent.”
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Overstocking in the US ahead of anticipated tariff hikes and the reduced demand for generic drugs in the Chinese market is stated as the reason for slowdown by industry experts. Namit Joshi, Chairman, Pharmexcil stated, “The US inventory buildup due to tariffs is the reason for this slowdown.”
Despite the slowdown, March saw an export rise of 10.6 percent, suggesting a correction of inventory cycle. Meanwhile, exports to NAFTA bloc declined 7.9 percent to nearly USD 10.6 billion.
Other major markets also reported dips, with shipments to the UK, India’s third largest Pharma importer falling by 1.2 per cent and exports to UAE falling by 1.4 percent. Meanwhile exports to Belgium and Kenya fell by 2.8 and 3.1 percent respectively.
Some markets showed growth with exports to Africa rising by 13 percent, Oceana by 11.5 percent, and Latin America by 10 percent. The slow-moving Europe market saw a moderate growth of 3.1 percent.
Experts cautioned that while diversification into emerging markets is ongoing, as these regions are price sensitive and logistically challenging, it might slow down the margins
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