NITI Aayog Releases Trade Watch Quarterly, Highlights Opportunities in Pharma Sector

New Delhi, Jun 24 (KNN) Government think tank NITI Aayog has released the eighth edition of its Trade Watch Quarterly for the January–March 2026 quarter, highlighting India's trade performance during FY 2025–26 and examining growth opportunities in the pharmaceutical sector.

The report noted that India's total merchandise and services trade expanded 5.4 per cent year-on-year to USD 1.84 trillion during FY 2025–26. Exports grew 4.2 per cent, while imports increased 6.5 per cent over the previous fiscal year.

India's services sector continued to support external trade growth, with services exports rising 9 per cent in the fourth quarter of FY 2025–26. 

The report said India remained the world's eighth-largest services exporter in 2025, with services exports recording a compound annual growth rate of 10.3 per cent between 2015 and 2025.The latest edition focuses on the pharmaceutical industry, which the report identifies as one of India's key export-oriented sectors. 

Global demand for pharmaceutical products and active pharmaceutical ingredients (APIs) was estimated at around USD 1.3 trillion in 2025, while India's exports of pharmaceutical and API products stood at USD 35.8 billion.

According to the analysis, India's pharmaceutical exports are largely concentrated in formulations, including generic medicines and retail medicaments, where the country has established a strong global presence. However, participation in higher-value segments such as biologics, immunologicals and advanced therapeutics remains limited. 

The report also noted continued dependence on imported pharmaceutical intermediates and raw materials, particularly from China.

The study identified Telangana, Gujarat and Maharashtra as the leading centres of pharmaceutical manufacturing and exports, supported by established industrial ecosystems and integration into global supply chains.

The report said opportunities exist to expand India's presence in high-value pharmaceutical products, strengthen domestic API manufacturing and improve participation in global value chains through investments in research, technology and manufacturing capabilities.

Speaking on the occasion, NITI Aayog Vice-Chairman Ashok Kumar Lahiri said that as global trade undergoes structural changes, India's ability to diversify its export base while strengthening domestic capabilities in key sectors will be important for sustaining growth. 

Referring to the pharmaceutical sector, he said the next phase of growth would depend on expanding into innovation-driven segments, strengthening domestic production of critical inputs and improving access to global markets.

(KNN Bureau)