India depends on China for up to 65% of the key raw materials needed to manufacture medicines, according to NITI Aayog’s Trade Watch Quarterly report released on Tuesday. The report also shared data on India’s overall imports, exports and the energy sector. NITI Aayog Vice-Chairman Ashok Kumar Lahiri said the Middle East crisis has highlighted the risks of relying too heavily on a single country or region. India should ensure supplies of oil, gas and other energy requirements from multiple countries and sources so that any future crisis does not disrupt availability. Lahiri also said that India and the US are expected to soon finalise and sign a bilateral trade agreement. Separate pharma chapter needed in FTAs Lahiri said NITI Aayog has recommended that whenever India negotiates a Free Trade Agreement (FTA) with any country or trade bloc, it should include a dedicated chapter on pharmaceutical products. Drug manufacturing and RD costs rising in India According to Lahiri, environmental regulations in India have become significantly stricter, increasing the cost of manufacturing medicines and conducting research and development (RD). He added that India’s system for encouraging innovation and commercialising new discoveries remains weak. As a result, investors willing to make long-term investments in new technologies are often hesitant to invest. Strong in production, but needs to move up the value chain Lahiri said India is widely recognised as the “pharmacy of the world.” NITI Aayog’s study found that while India performs strongly in pharmaceutical manufacturing, it now needs to move further up the value chain. Indian pharmaceutical companies already enjoy a strong reputation in international markets. If they introduce high-quality branded products at competitive prices, India could strengthen its position in the global pharmaceutical market. India leads in supplying affordable medicines India is one of the world’s largest suppliers of affordable generic medicines, with nearly half of these exports going to African countries. Global pharmaceutical demand reached ₹123.13 lakh crore in 2025 The global demand for medicines and pharmaceutical raw materials was approximately ₹123.13 lakh crore ($1.3 trillion) in 2025. Around ₹96.61 lakh crore ($1.02 trillion) was spent on finished medicines such as tablets, syrups and capsules. About ₹24.72 lakh crore ($261 billion) was spent on chemicals and raw materials used in pharmaceutical manufacturing. NITI Aayog’s recommendations To reduce dependence on imports and strengthen India’s pharmaceutical sector, NITI Aayog has proposed several measures: Post navigation 48% customers not shown expiry date during online shopping:Report based on survey conducted of customers in 164 districts
