Why in News?
NITI Aayog released the 8th edition of “Trade Watch Quarterly” (Jan-Mar 2026), highlighting India’s trade performance and focusing on the pharmaceutical sector.
India’s Trade Performance
- Total merchandise and services trade: $1.84 trillion in FY 2025-26 (↑5.4% YoY).
- Exports: Grew by 4.2%.
- Imports: Grew by 6.5%.
- Services exports: Increased by 9.0%, maintaining a strong services surplus.
- India remained the 8th largest services exporter in 2025.
- Services exports recorded a CAGR of 10.3% (2015-2025), higher than the global average.
Pharmaceutical Sector
- Global pharmaceutical and API market estimated at $1.3 trillion (2025).
- India’s pharmaceutical and API exports reached $35.8 billion.
- India is a leading supplier of Generic medicines, Vaccines, and Essential therapeutics
Challenges
- Export basket remains concentrated in generic formulations and retail medicaments.
- Limited presence in biologics, biosimilars, immunologicals, and advanced therapeutics.
- Continued dependence on imported Active Pharmaceutical Ingredients (APIs) and intermediates, especially from China.
Leading Pharmaceutical States
- Telangana, Gujarat, and Maharashtra
- These states lead in production, exports, and integration into global pharmaceutical value chains.
Way Forward
- Expand into high-value pharmaceutical segments.
- Strengthen domestic API manufacturing.
- Increase investments in R&D, technology, and skill development.
- Improve regulatory efficiency and market access.
Active Pharmaceutical Ingredient (API)
- The biologically active component of a medicine responsible for its therapeutic effect.
- APIs are combined with excipients to produce the final dosage form.
Biologics
- Medicines produced from living organisms or biological processes.
- Examples include monoclonal antibodies, vaccines, and recombinant proteins.
[2021] With reference to international trade of India, which of the following statements are correct:
1.The Top 3 export destinations of India are – USA, UAE, China.
2.The Top 3 exports from India include – Petroleum Products, Drug Formulations, Agricultural Products.
3.Agricultural exports have consistently risen from 2016-17 to 2021-22.
4.India’s merchandise exports are less than its merchandise imports.
Select the correct code from the options given below:
[A] 1 and 4
[B] 1 and 3
[C] 2 and 4
[D] 1, 2, 3 and 4