India’s pharmaceutical exports rose more than 2% year on year to $31.11 billion in FY26 despite a 23% decline in March amid the fallout of the West Asia war. A new record, the exports bettered the $30.47 billion registered in 2024-25. March incidentially had played a crucial role in shaping the overall FY25 performance as shipments to the all important U.S. market surged in the face of an impending higher tariff regime.
Base year effect
In March 2026, pharma exports declined as much as 23.17% to $2,828.60 million ($3,681.66 million), official numbers showed. The downturn was largely concentrated in the final quarter, driven by logistics disruptions and tariff-related uncertainties, a highly placed source said.
Exports to the U.S, in particular, came under significant pressure, as the war disrupted shipping. U.S. tariff worries remained in 2025-26 too and there were concerns over potential tariffs on branded patented drugs manufactured outside the US. Generic medicines retain a cushion, for now, an official said.
The impact of the evolving situation was not completely unexpected. Commerce Secretary Rajesh Agrawal had told a meeting here earlier this month while “we are likely to land up better than last year,” but the $32 billion target set for FY26 is unlikely to be achieved. The performance in rupee terms may still be better given the the currency depreciation, he had said.
Pharmaceuticals Export Promotion Council of India chairman Namit Joshi, who earlier estimated the March exports to be lower anywhere between $250 million to $500 million due to the war impact, had said FY26 exports will be “somewhere near to last year achievement”. The The above normal sourcing by the U.S. in March 2025 was bound to have a bearing on the FY26 numbers, he said.
For the 11 months upto February, the exports were nearly $28.29 billion ($26.79 billion). “We have already achieved 5.6% growth upto February. March is important for us,” Pharmexcil Director General Raja Bhanu said.
With granular details of the FY26 performance expected soon, a clear picture on various aspects will emerge, including India’s emphasis on diversifying to newer markets.
