NITI Aayog Releases Trade Watch
Quarterly; Highlights Pharma Sector as Key Driver of Future Export Growth
1.
Release of Trade Watch Quarterly
·
Ashok Kumar Lahiri released the latest edition of “Trade
Watch Quarterly” for Q4 FY 2025–26 (January–March 2026) in New
Delhi.
·
The publication was released in the presence of
senior officials, including the CEO of NITI Aayog.
2. Focus
of the Report
·
The report reviews:
o
Global trade trends.
o
India's trade performance.
o
Emerging opportunities and challenges.
·
The thematic focus of this edition is India’s
pharmaceutical sector, one of the country's most globally competitive
industries.
India's
Overall Trade Performance
3. Total
Trade Reaches Record Level
·
India's total merchandise and services trade
reached USD 1.84 trillion during FY 2025–26.
·
Total trade expanded by 5.4% year-on-year.
4. Export
and Import Growth
·
Exports increased by 4.2%.
·
Imports grew by 6.5%.
·
The figures indicate continued expansion of India's
engagement with the global economy despite geopolitical and macroeconomic
uncertainties.
5. Strong
Services Trade Performance
·
Services exports grew by 9.0% during Q4 FY
2025–26.
·
Services export growth exceeded import growth,
helping maintain a strong services trade surplus.
6. Global
Ranking
·
India retained its position as the world’s
eighth-largest services exporter in 2025.
·
India's services exports recorded a 10.3% CAGR
between 2015 and 2025, significantly above the global average.
Pharmaceutical
Sector: Thematic Focus
7.
Strategic Importance
·
India's pharmaceutical industry has emerged as a
strategic pillar of the economy.
·
The sector is supported by:
o
Strong manufacturing capabilities.
o
Global leadership in generic medicines.
o
Significant vaccine production capacity.
o
Integration into global healthcare supply chains.
8. Global
Pharmaceutical Market
·
Global demand for pharmaceuticals and Active
Pharmaceutical Ingredients (APIs) is estimated at approximately USD 1.3
trillion in 2025.
·
India exported pharmaceutical and API products
worth USD 35.8 billion.
9.
Contribution to Global Health
·
India remains:
o
A leading supplier of generic medicines.
o
A major producer of vaccines.
o
An important provider of essential therapeutics.
·
The sector contributes significantly to global
health security.
Strengths
of India's Pharma Exports
10.
Dominance in Generic Medicines
·
India's export strength is concentrated in:
o
Generic drugs.
o
Retail medicaments.
o
Pharmaceutical formulations.
·
These products enjoy strong acceptance across
global markets.
11.
Competitive Manufacturing Base
·
India's success is driven by:
o
Cost-effective production.
o
Large-scale manufacturing capacity.
o
Established pharmaceutical clusters.
o
Skilled workforce.
Emerging
Challenges
12.
Limited Presence in High-Value Segments
·
The report notes that the global pharmaceutical
industry is increasingly moving towards:
o
Biologics.
o
Immunological products.
o
Advanced therapeutics.
o
Precision medicines.
·
India's participation in these high-value segments
remains relatively limited.
13. API
Import Dependence
·
India has strengthened its position in specialized
APIs and antibiotics.
·
However, dependence on imported:
o
Raw materials.
o
Pharmaceutical intermediates.
remains
significant, especially from China.
Leading
Pharmaceutical States
14. Key
Production Hubs
The
report identifies three states as the backbone of India's pharmaceutical
industry:
·
Telangana
·
Gujarat
·
Maharashtra
15.
Reasons for Success
These
states benefit from:
·
Strong industrial ecosystems.
·
Cluster-based development.
·
Globally competitive firms.
·
Supportive policy environments.
·
Strong integration into global value chains.
Future
Opportunities
16.
Expansion into Advanced Segments
The
report highlights opportunities in:
·
Biologics.
·
Biosimilars.
·
Advanced therapeutics.
·
High-value pharmaceutical products.
17.
Strengthening API Ecosystem
·
Expanding domestic API manufacturing can:
o
Reduce import dependence.
o
Improve supply chain resilience.
o
Enhance strategic self-reliance.
18.
Innovation and R&D
Future
growth will require greater investments in:
·
Research and Development (R&D).
·
Technology adoption.
·
Skilled workforce development.
·
Regulatory efficiency.
19.
Market Access Improvements
·
Better access to international markets through
regulatory cooperation and trade facilitation could significantly boost
exports.
Remarks
by NITI Aayog Vice-Chairman
20. Key
Message from Ashok Kumar Lahiri
·
Ashok Kumar Lahiri emphasized that India's future
trade growth will depend on:
o
Diversifying exports.
o
Strengthening domestic manufacturing capabilities.
o
Enhancing resilience amid global trade shifts.
·
He noted that while India is already a global
leader in generic medicines, the next phase of growth must be driven by:
o
Innovation-led pharmaceutical production.
o
Higher value addition.
o
Domestic production of critical inputs.
o
Improved global market access.
Significance
of the Report
21.
Policy Resource
·
The Trade Watch Quarterly serves as an important
resource for:
o
Policymakers.
o
Industry leaders.
o
Researchers.
o
Academic institutions.
·
It provides:
o
Data-driven analysis.
o
Sectoral insights.
o
Forward-looking policy recommendations.
Key
Takeaway
India's trade sector remained resilient in FY
2025–26, with total trade reaching USD 1.84 trillion, supported by
strong growth in services exports. The report identifies the pharmaceutical
sector as a major growth engine and stresses that India's next export leap will
depend on moving beyond generic medicines into high-value segments such as
biologics and advanced therapeutics, while strengthening domestic API
manufacturing and innovation capabilities.
[ABS News Service/24.06.2026]
Ashok
Kumar Lahiri, Vice-Chairman, NITI Aayog, released the latest edition of the “Trade
Watch Quarterly” publication for Quarter 4 of FY’2025-26 (Jan-Mar 2026) on 23rd
June 2026, in New Delhi. It was released in the presence of the CEO, NITI Aayog
and other senior officials.
The
publication provides a comprehensive assessment of global and domestic trade trends
at a time when global trade has demonstrated resilience despite persistent macroeconomic
and geopolitical uncertainties. India's trade remained broadly stable, with total
merchandise and services trade expanding by 5.4% year-on-year (y-o-y) during April–March
FY’2025-26 to reach $1.84 trillion. The thematic focus of this edition is the pharmaceutical
sector, one of India's most globally competitive industries. India is a leading
supplier of generic medicines and a major provider of vaccines and essential therapeutics,
making an important contribution to global health security. The study analyses global
demand patterns vis-à-vis India's export profile to identify untapped opportunities,
while examining the sector's competitive strengths, existing gaps, and scope for
higher value addition and market diversification.
India’s
trade performance in Q4 FY’2025–26 underscored the continued resilience of the external
sector, supported by robust growth in services trade. While merchandise exports
moderated and imports increased, the composition of trade remained broadly stable.
Services trade remained a key source of strength, with exports growing by 9.0%,
outpacing import growth and sustaining a strong services surplus. India retained
its position as the world’s eighth-largest services exporter in 2025, with services
exports recording a CAGR of 10.3% during 2015–2025, significantly above the global
average. Overall, India’s total trade reached $1.84 trillion during FY2025–26, with
exports growing by 4.2% and imports by 6.5%, highlighting the continued dynamism
of India’s engagement with the global economy.
The
thematic focus of this quarter’s edition, India’s pharmaceutical sector has emerged
as a strategic pillar of the economy, supported by a strong manufacturing base,
global competitiveness in generic medicines, and growing integration into international
healthcare supply chains. Global pharmaceutical and Active Pharmaceutical Ingredients
(APIs) demand is estimated at approximately $1.3 trillion in 2025, while India exported
pharmaceutical and API products worth $35.8 billion. Supported by its strong capabilities
in generic medicines, vaccines, and essential drugs, India continues to play an
important role in global healthcare supply chains, although its share in global
pharmaceutical trade remains modest, indicating significant opportunities for future
growth.
The
analysis highlights that India’s export strength remains concentrated in formulations,
particularly retail medicaments and generic drugs, where it has established a strong
presence across global markets. However, the global pharmaceutical industry is increasingly
shifting towards high-value segments such as biologics, immunologicals,
and advanced therapeutics, where India’s participation remains limited. In APIs,
India has strengthened its position in several specialised chemical intermediates
and antibiotics, but continues to face dependence on imported raw materials and
intermediates, particularly from China.
Telangana,
Gujarat, and Maharashtra have emerged as the key pillars of India’s pharmaceutical
industry, driving a significant share of the country’s production, exports, and
integration into global value chains. Their success is rooted in strong manufacturing
ecosystems, cluster-based development, globally competitive firms, and supportive
policy frameworks.
The
analysis highlights that India’s pharmaceutical sector is well positioned to strengthen
its role in global value chains, supported by a growing innovation ecosystem, strong
manufacturing capabilities, and increasing global demand for medicines and healthcare
products. Opportunities exist to expand India’s presence in high-value segments
such as biologics, biosimilars, and advanced therapeutics, while further strengthening
domestic API production and upstream capabilities can enhance supply chain resilience.
Continued investments in R&D, technology, skills, and regulatory efficiency,
alongside improved market access in key export destinations, can support higher
value addition and reinforce India’s position as a leading global pharmaceutical
manufacturing and innovation hub.
Addressing
the occasion, Ashok Kumar Lahiri stated that “as global trade undergoes structural
shifts, India’s ability to diversify its export base while strengthening domestic
capabilities in key sectors will be critical to sustaining growth and enhancing
resilience. The pharmaceutical sector illustrates both India’s strengths and future
opportunities. While India has emerged as a leading supplier of generic medicines
to the world, the next phase of growth will depend on moving towards innovation-driven
segments, strengthening domestic production of critical inputs, and improving access
to global markets.”
The
edition serves as a valuable resource for policymakers, industry, researchers, and
academia, offering data-driven insights and forward-looking policy recommendations
to support informed decision-making and strengthen India’s trade competitiveness
in an evolving global landscape.