Pharma Exports Exceed $30 Billion In FY25, US Remains Largest Market For Indian Shipments

India’s pharmaceutical industry recorded a major milestone in FY25, with exports exceeding the $30 billion mark. The United States remained the largest overseas market, accounting for more than one-third of total pharma exports from the country.

As per official trade data, the total value of pharmaceutical exports reached $30,467.32 million in the 2024-25 fiscal year—an increase of over 9 per cent compared to the $27,851.70 million recorded in the preceding 2023-24 financial year (FY24).

March alone witnessed a sharp rise in outbound shipments, with pharma exports climbing more than 30 per cent year-on-year to $3,681.51 million, up from $2,805.71 million in the same month a year earlier. The surge highlighted robust global demand for Indian pharmaceutical products, reported IANS.

US Leads As Top Destination, Other Key Markets Emerge

The United States continued to dominate as India’s top pharmaceutical export destination, with shipments valued at $8,953.37 million in FY25—a growth of 14.29 per cent from the previous year. Apart from the US, notable export destinations included the United Kingdom, Brazil, France, and South Africa, underscoring India’s strong presence in major international markets.

In addition to export growth, domestic industry performance is also expected to remain strong. According to India Ratings and Research (Ind-Ra), the Indian pharmaceutical market is projected to grow at 8–9 per cent in FY26. “This is against 6.5 per cent year-on-year in FY24 and 9.9 per cent YoY growth in FY23,” said Krishnanath Munde, associate director at India Ratings and Research.

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Steady Domestic Momentum, Despite Weak Volume Growth

The Ind-Ra report also pointed to steady revenue generation, with February witnessing 7.5 per cent year-on-year growth, mainly driven by price hikes (5.2 per cent) and new product launches (2.4 per cent). Volume growth, however, remained sluggish at negative 0.2 per cent YoY. For FY25 so far, the average year-to-date growth stood at 7.3 per cent, supported by a 5.5 per cent rise in pricing, a 2.7 per cent boost from new launches, and marginal volume movement.

Meanwhile, a report by McKinsey & Company noted that the Indian pharmaceutical industry  expanded at a CAGR of 8 per cent and recorded a 9 per cent growth in exports in 2024 alone—nearly double the global average. It also reaffirmed India’s position as the world’s largest supplier of generic drugs.

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