India’s pharma sector posts 11% growth in Q1 FY26, outpacing GDP
Pharmexcil reports Indian pharma revenue and EBITDA growth driven by hospitals, diagnostics and exports, reinforcing sector’s global role in generics, APIs and biosimilars
The Pharmaceutical Exports Promotion Council of India (Pharmexcil) has released its statement on the performance of the Indian pharmaceutical sector in Q1 FY26.
India’s GDP recorded 7.8 per cent growth in Q1 FY26, while the pharma sector delivered approximately 11 per cent growth in revenue and EBITDA. This growth was supported by hospitals, diagnostics and pharmaceutical exports.
Pharmexcil highlighted that the pharma sector continues to outperform broader economic growth, recording 11 per cent year-on-year growth in Q1 FY26. The performance was attributed to leading players in hospitals, diagnostics and generics. India has established its presence in the global generic market by supplying quality products at scale and affordable prices. Export growth has been achieved through consistent innovation over the last two to three decades.
According to Pharmexcil, the industry aims to sustain growth by leveraging its manufacturing base in generic drugs, active pharmaceutical ingredients (APIs) and biosimilars. Exports remain central to the sector’s performance, reflecting India’s global manufacturing capabilities and role in international healthcare.
Indian generic exports contribute more than 40 per cent of global generic drug sales, with key markets including the United States, European Union and Africa. Indian companies also hold over 90 per cent share in the global market for HIV and oncology drugs.
In FY25, pharma exports grew 10 per cent year-on-year, with the United States contributing 25 per cent of total pharma exports. API exports have also shown strong growth, particularly to China and Europe, positioning India as a hub for cost-effective, high-quality pharmaceutical manufacturing.
“As India’s GDP continues to demonstrate robust growth, the pharmaceutical sector has proven to be a high-velocity growth engine, outperforming broader economic trends,” said Namit Joshi, Chairman of Pharmexcil. “Not only has the sector been a significant contributor to GDP, but it has also demonstrated remarkable strength in both domestic and export markets, reinforcing its position as a global healthcare powerhouse. This highlights the resilience and global competitiveness of India’s pharma sector, particularly in generics, APIs, and biosimilars,” he added.
Pharmexcil noted that with established dominance in generics, biosimilars and APIs, India’s pharmaceutical exports are expected to reach USD 50 billion by FY2030, further strengthening the country’s economic growth trajectory.