Key Highlights of Trade Watch Quarterly – Q4 FY2025‑26
The NITI Aayog unveiled the eighth edition of its Trade Watch Quarterly for the period Jan‑Mar 2026 on 23 June 2026 in New Delhi. The report covers overall trade trends and gives special attention to the pharmaceutical sector.
Key Developments
- India’s total merchandise and services trade reached $1.84 trillion, up 5.4 % YoY for FY2025‑26.
- Exports grew 4.2 % while imports rose 6.5 %, reflecting a modest trade surplus.
- Services exports surged 9.0 %, keeping India as the world’s eighth‑largest services exporter with a services surplus.
- Pharma and API exports amounted to $35.8 billion against a global demand of about $1.3 trillion (2025).
- The report flags a shift needed from low‑value formulations to high‑value segments such as biologics and biosimilars.
Important Facts
India’s export basket in pharma is dominated by generic medicines and retail formulations. High‑value areas like biologics, immunologicals and advanced therapeutics remain under‑penetrated. In the API space, India excels in specialised intermediates and antibiotics but still depends heavily on imports of raw materials, especially from China.
Three states — Telangana, Gujarat and Maharashtra — drive most of the country’s pharma production and exports, thanks to strong manufacturing clusters, supportive policies and global‑ready firms.
Exam Relevance
The data illustrate the resilience of India’s external sector, a key topic in GS‑3 (Economy). The robust services surplus underscores the importance of services in growth narratives. The pharma analysis links to discussions on strategic industries, import‑export dependence, and the need for domestic R&D — all frequent UPSC essay themes.
Way Forward
To capture higher value, India should:
- Boost R&D in biologics, biosimilars and advanced therapeutics to move up the value chain.
- Strengthen domestic API production to reduce reliance on China, enhancing supply‑chain security.
- Streamline regulatory approvals and improve market access in key destinations.
- Encourage public‑private partnerships in pharma clusters of Telangana, Gujarat and Maharashtra.
- Maintain the growth momentum of services exports, which currently grow at a CAGR of 10.3 % (2015‑2025), well above the global average.
These steps can help India diversify its export base, increase value addition, and reinforce its role in global health security.