NITI Aayog launched the eighth edition of its "Trade Watch Quarterly" publication for Quarter 4 of FY2025-26 (January-March 2026) on June 23, 2026, in New Delhi. The report was released by Shri Ashok Kumar Lahiri, Vice-Chairman of NITI Aayog, in the presence of the CEO and other senior officials.
The publication provides a comprehensive assessment of global and domestic trade trends, highlighting resilience despite persistent macroeconomic and geopolitical uncertainties. India's total merchandise and services trade expanded by 5.4% year-on-year during April-March FY2025-26 to reach $1.84 trillion. Exports grew by 4.2% while imports increased by 6.5% during the fiscal year.
In Q4 FY2025-26, India's trade performance showed continued resilience supported by robust services trade growth. Services exports grew by 9.0%, outpacing import growth and sustaining a strong services surplus. India retained its position as the world's eighth-largest services exporter in 2025, with services exports recording a compound annual growth rate (CAGR) of 10.3% during 2015-2025, significantly above the global average.
The thematic focus of this edition is India's pharmaceutical sector, analyzed as one of the country's most globally competitive industries. The global pharmaceutical and Active Pharmaceutical Ingredients (APIs) demand is estimated at approximately $1.3 trillion in 2025, while India exported pharmaceutical and API products worth $35.8 billion. India is a leading supplier of generic medicines and a major provider of vaccines and essential therapeutics, making significant contributions to global health security.
The analysis reveals that India's export strength remains concentrated in formulations, particularly retail medicaments and generic drugs. However, the global pharmaceutical industry is increasingly shifting toward high-value segments such as biologics, immunologicals, and advanced therapeutics, where India's participation remains limited. In APIs, India has strengthened its position in several specialized chemical intermediates and antibiotics but continues to face dependence on imported raw materials and intermediates, particularly from China.
Regionally, Telangana, Gujarat, and Maharashtra have emerged as key pillars of India's pharmaceutical industry, driving a significant share of the country's production, exports, and integration into global value chains. Their success is attributed to strong manufacturing ecosystems, cluster-based development, globally competitive firms, and supportive policy frameworks.
The report identifies opportunities for India to expand its presence in high-value segments such as biologics, biosimilars, and advanced therapeutics while strengthening domestic API production and upstream capabilities to enhance supply chain resilience. It recommends continued investments in R&D, technology, skills, and regulatory efficiency, alongside improved market access in key export destinations.
Shri Ashok Kumar Lahiri emphasized that India's ability to diversify its export base while strengthening domestic capabilities in key sectors will be critical to sustaining growth and enhancing resilience. He noted that while India has emerged as a leading supplier of generic medicines, the next phase of growth will depend on moving toward innovation-driven segments, strengthening domestic production of critical inputs, and improving access to global markets.
The publication serves as a resource for policymakers, industry, researchers, and academia, offering data-driven insights and forward-looking policy recommendations to strengthen India's trade competitiveness.