New Delhi [India], October 29 : India’s pharmaceutical exports grew 4.90 per cent year-on-year to reach USD 16,135.93 million during the first half of the financial year 2026–27 (April–September 2026), up from USD 15,382.85 million recorded in H1 FY26. 
According to the Pharmaceuticals Export Promotion Council of India (Pharmexcil), the expansion during the six-month period drew support from steady increases in shipments of drug formulations, biologicals, bulk drugs, drug intermediates, and surgical products.
Quarterly figures showed that outbound shipments during July–September 2026 (Q2 FY27) expanded 3.05 per cent year-on-year to USD 8.04 billion compared with USD 7.80 billion in the corresponding period of the previous fiscal. Within the second quarter, September registered the highest monthly export valuation at USD 2,744.05 million, marking an increase of 4.68 per cent compared to September 2025.
Shipments to Europe emerged as a major driver of this growth, expanding 9.66 per cent to USD 3,288.27 million and accounting for 20.38 per cent or over one-fifth of total Indian pharmaceutical exports during the half-year window. Key individual European markets registered double-digit increases, led by Germany with a 21.57 per cent rise, followed by the Netherlands at 15.93 per cent and France at 15.02 per cent.
Namit Joshi, Chairman of Pharmexcil, noted that the sector must pivot towards innovation and higher-value segments.
"India has built its global pharmaceutical reputation on the strength of quality, affordable medicines and large-scale manufacturing. The next phase of our growth should focus on moving up the value chain, where Indian companies are not just suppliers but active partners in pharmaceutical innovation," Joshi stated.
"This will require greater investment in research and development, technology transfer and co-development of complex generics, biosimilars and specialised therapies. Europe presents significant opportunities for such collaborations, given its strong research and innovation ecosystem. By combining India's manufacturing and formulation expertise with global technological capabilities, we can create opportunities for Indian companies to participate in higher-value segments of the pharmaceutical industry," he added.
The half-year performance was further supported by broad geographical diversification, which cushioned the impact of moderating exports to the United States. Outbound shipments to ASEAN climbed 21.54 per cent, deliveries to Latin America and the Caribbean rose 16.58 per cent, and exports to Africa expanded 6.48 per cent.
Bhavin Mehta, Vice Chairman of Pharmexcil, said, "The double-digit growth in bulk drugs and drug intermediates reflects the breadth of India’s pharmaceutical manufacturing capabilities. The expansion of exports across Europe, ASEAN, Latin America and Africa also demonstrates the opportunities available to companies across the value chain." 
"Continued investment in quality systems, advanced manufacturing and regulatory preparedness can support greater global participation by Indian exporters, including MSMEs," he added.
Across product lines, drug formulations and biologicals formed the largest category, representing 73.84 per cent of total export volume and rising 3.81 per cent. 
Bulk drugs and drug intermediates grew 12.07 per cent, while surgical exports climbed 9.53 per cent during the period. 
Pharmexcil stated that it will continue working with the Government of India, regulatory authorities, and industry stakeholders to enhance market access, strengthen compliance frameworks, and advance innovation-led manufacturing.