INDUSTRY
NITI Aayog prescribes big reforms to spur high-value pharmaceutical exports
- IBJ Bureau
- Jun 24, 2026
NITI Aayog has proposed a series of reforms to transition India from pharmacy of the world to a global pharmaceutical innovation hub.
The reforms include boosting R&D, accelerating patent approvals, promoting high-value drug manufacturing, strengthening industry-academia linkages, addressing trade barriers, enhancing FTA provisions and encouraging sustainable production.
India’s pharmaceutical sector has strong foundational advantages in generic manufacturing, scale and regulatory compliance.
But its global competitiveness remains constrained by limited presence in high-value segments, the think-tank has said in its Trade Watch report for Q4FY26.
The latest edition focuses on India’s API and pharmaceutical trade, highlighting opportunities in a global market valued at $1.3 trillion, including $261.2 billion in APIs.
The sector contributes 1.7 per cent to India’s GDP, 7.2 per cent of manufacturing GVA, supports around 27 crore jobs and exports about $35.8 billion worth of products.
Despite being a leading supplier of generic medicines and vaccines, India’s global export share is only 2.8 per cent, underscoring significant potential to expand into high-value segments, such as biologics, immunologicals, vaccines and advanced therapeutics, it has added.
The report points out that India must realign its pharmaceutical ecosystem to capture emerging opportunities and move up the value chain.
The NITI Aayog has recommended a comprehensive strategy centred on innovation, regulatory reforms and sustainability to propel the country’s pharmaceutical industry in the high-value segments.
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