Hyderabad: Telangana, Gujarat and Maharashtra have emerged as the key pillars of India’s pharmaceutical industry, driving a significant share of the country’s production, exports and integration into global value chains, according to the latest report released by the government think tank Niti Aayog.
The eighth edition of the ‘Trade Watch’ for the January-March 2026 quarter highlighted India’s trade performance during FY2025–26 and identified major growth opportunities in the pharmaceutical sector, with Telangana being recognised as a leading life sciences and vaccine hub.
The report said Telangana’s success in the pharmaceutical sector stems from its strong manufacturing ecosystem, cluster-based development model, globally competitive companies and supportive policy framework. Along with Gujarat and Maharashtra, Telangana has played a crucial role in strengthening India’s position in global pharmaceutical supply chains.
While Telangana has emerged as a major centre for life sciences, vaccines and biotechnology, Gujarat has built on its strong chemical-pharmaceutical base and export orientation, while Maharashtra combines large-scale manufacturing with strong research and development capabilities.
Telangana accounts for nearly 40 per cent of India’s pharma production with over 2,000 life sciences companies and over 269 US Federal Drugs Agency (USFDA) -approved facilities. Gujarat contributes around 33–40 per cent of production with over 3,000 units, while Maharashtra accounts for 14 per cent of production with over 3,800 units.
The report stated that all three states are strongly export-oriented. Telangana is a major global vaccine hub, Gujarat contributes 17–28 per cent of India’s pharma exports with strong port access, and Maharashtra accounts for 20–25 per cent of exports with a high number of globally compliant manufacturing facilities.
The report says ‘cluster development’ has been central to growth. Telangana’s Genome Valley has created a leading life sciences and biotech hub, bringing together firms, research institutions, and startups.
Maharashtra’s pharma clusters across the Mumbai–Pune corridor and other cities have strengthened manufacturing and R&D linkages. Gujarat’s chemical and pharma clusters in Ankleshwar, Vapi, Dahej, and others provide strong backward linkages, reducing costs and improving efficiency.
The report noted that India’s pharmaceutical industry has become a strategic pillar of the national economy, contributing more than 1.7 per cent to GDP and 7.2 per cent of manufacturing gross value added, while supporting around 2.7 million livelihoods.
Pharmaceutical and Active Pharmaceutical Ingredient (API) exports together were valued at nearly $35.8 billion in 2025. India remains one of the world’s largest suppliers of generic medicines and a major producer of vaccines and essential drugs, though its share in global pharmaceutical and API exports stands at only 2.8 per cent, indicating significant scope for expansion.