Chennai: Exports of drugs and pharmaceuticals grew 9.39 per cent in FY25 to cross $30 billion while the Indian pharma market registered a growth of 8.4 per cent to Rs 2.2 lakh crore.
In FY25, the domestic pharma market saw a slower growth in volume at 0.4 per cent. However, prices of medicines increased by 5.6 per cent and the new launches rose 2.4 per cent. This helped the pharma market touch Rs 2.259 lakh crore revenue in FY25, as per the data of India Ratings.
In the pharma market the acute segment accounts for 45 per cent, while the chronic segment contributes 34 per cent and sub-chronic segment 21 per cent. Drugs coming under the National List of Essential Medicines (NLEM) accounts for 12.7 per cent. These medicines are under price regulation and the prices are allowed to go up based on the government’s wholesale price index. The remaining 87 per cent drugs are allowed for an automatic increase of 10 per cent every year.
On the export front, pharma shipments grew 9.39 per cent in FY25 to cross $30 billion and touch $30.467 billion against $27.851 billion in FY24. In rupee terms, pharma exports grew 11.86 per cent to Rs 2.57 lakh crore in FY25. In the month of March, which saw frontloading of shipments across the globe, pharma exports grew 31 per cent to $3681 million against $2805 million in March 2024, as per the data of the Commerce Ministry.
Pharmaceutical exports have been under pressure of impending tariffs ever since Donald Trump returned as US president. However, the US has not yet imposed tariffs on pharma imports. The US is India’s biggest buyer of generic pharma.
The US accounts for around 48 per cent of the global pharmaceutical spending and has always been a key market for most leading Indian pharmaceutical companies as well, accounting for a sizable 33-35 per cent share of their revenues.
The pricing pressure on generic drugs in the US had eased over the last three-four quarters, to mid-to-high single digit levels by Q2 FY2025 due to increasing drug shortages, thus supporting the revenue growth of generic pharmaceutical companies.
The UK, Brazil, France and South Africa are the other major markets of Indian pharma products.
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