New Delhi: India’s total merchandise and services trade expanded by 5.4 per cent year-on-year during January–March in the financial year 2025-26 to reach $1.84 trillion, reflecting a stable performance despite the uncertainties in global markets, according to NITI Aayog’s latest “Trade Watch Quarterly” released on Tuesday.
Ashok Kumar Lahiri, Vice-Chairman, NITI Aayog, released the report in New Delhi, in the presence of the CEO, NITI Aayog and other senior officials.
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, the report states.
Services trade remained a key source of strength, with exports growing by 9. Per cent, 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 per cent 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 per cent and imports by 6.5 per cent, 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 report states.
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, the report further states.
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, according to the report.
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.
(IANS)
