India's pharmaceutical exports reached a record $31.12 billion in the fiscal year 2026 (FY26), marking a growth of 2.13% despite a significant 10% decline in shipments to the United States, which accounts for over 30% of India's pharma exports. The downturn in the US market was attributed to cyclical factors, including high previous year bases and generic price erosion. In contrast, exports to Europe and Africa saw substantial growth, with Europe increasing by 7.1% and Africa by 13%. The vaccines segment led the growth, rising by 26.4%, while bulk drugs and intermediates also contributed positively with a growth of 3.7%. Looking forward, the industry expects export growth to accelerate to 6-9% in FY27, driven by new biosimilars and opportunities in emerging markets. The diversification away from mature markets is seen as a positive trend, reducing concentration risk and enhancing India's export potential. Imports of pharmaceutical products rose by 7.9% to $9.62 billion, indicating a shift towards high-value formulations and biologics, while dependence on China for raw materials showed signs of easing.