India imports about 65% of the raw materials needed to make medicines from China, NITI Aayog said Tuesday, warning that heavy dependence on a single country or region leaves the pharmaceutical supply chain vulnerable.

Speaking while releasing the Trade Watch quarterly report, NITI Aayog Vice‑Chairperson Ashok Kumar Lahiri said the “Middle East crisis” has underlined the need to diversify suppliers for critical inputs such as medicines, oil and gas. “We should not depend on one country or region,” he told reporters, adding that India must ensure multiple sources for energy and other essential supplies so crises do not disrupt domestic availability.

The report — which also presents data on India’s overall imports‑exports and energy sector — found that while India is a global leader in producing affordable generic drugs, much of the active pharmaceutical ingredients (APIs) and other chemical inputs still come from China. Officials said the finding supports recent policy discussions on securing supply chains and boosting domestic capability.

Lahiri urged negotiators to include a dedicated pharmaceuticals chapter in any free trade agreement (FTA). “When negotiating FTAs with countries or blocs, a separate chapter on pharmaceutical products should be included,” he said, according to excerpts shared by the Aayog. The recommendation reflects concerns that tariff and non‑tariff provisions must specifically protect and promote India’s pharma value chain.

The report also highlighted rising costs for R&D and manufacturing in India. Stricter environmental rules, Lahiri noted, have pushed up the cost of running production facilities and carrying out research into new drugs. “Environmental regulations have become quite tight. That has increased the cost for companies to produce medicines and pursue new R&D,” he said. The Aayog suggested that India’s system for translating academic research into commercial products needs strengthening to attract long‑term investors.

India’s strength remains production. The Aayog’s study concluded that India performs well on drug manufacturing but needs to move up the value chain — into higher‑margin, branded and innovative products — to capture greater global value. “Indian firms have good international credibility. If they bring high‑quality, reasonably priced branded products, our grip on global markets can strengthen,” Lahiri said.

The report also underlined India’s role as a supplier of affordable generics worldwide: about half of the low‑cost medicines exported from India go to African countries. In 2025, global demand for medicines and inputs was estimated at roughly ₹123.13 lakh crore (about $1.3 trillion), of which about ₹96.61 lakh crore went to finished medicines and roughly ₹24.72 lakh crore to chemicals and raw materials used by drug makers, the Aayog noted.

To reduce dependence on imports and build resilience, the Aayog offered a set of policy suggestions:

• Encourage Indian firms to move beyond generics into high‑value pharmaceutical segments.

• Strengthen links from college and university research to industry so discoveries commercialise faster.

• Make regulatory approvals for life‑sciences innovation clearer, faster and more transparent to draw patient long‑term investment.

• Include pharma‑specific provisions in FTAs and pursue bilateral deals — Lahiri said India and the US are close to finalising a bilateral trade pact and expected to sign it soon.

Experts and industry sources say the challenge is not only policy but capacity and investment. Building API manufacturing at scale requires capital, land, and trained personnel; cleaning up chemical manufacturing to meet environmental norms adds to costs. The Aayog’s recommendations aim to balance ecological compliance with incentives for domestic production.

Further details on timelines, funding packages or specific incentives were not available in the report. Authorities are reviewing follow‑up measures, and officials said more clarity on implementation will be provided as the government consults industry stakeholders.

Why it matters
India’s dependence on China for pharma inputs is a strategic vulnerability for public health and industrial policy. Any disruption — from geopolitical tensions to supply shocks — can affect drug availability and prices at home and for countries that rely on Indian exports. Moving up the value chain would also help India capture higher margins and reduce exposure to external suppliers.

Further details are awaited as policymakers and industry leaders discuss the Aayog’s recommendations and the implications for upcoming trade talks.

US Secretary of State Marco Rubio asked Prime Minister Narendra Modi to visit the United States; talks covered defence, trade, energy and Indo‑Pacific cooperation

Marco Rubio met Prime Minister Narendra Modi at Seva Teerth in New Delhi on Saturday and extended an invitation from US President Donald Trump for a state visit to the United States, officials said. The meeting — held in the morning at the prime minister’s residence complex — came days after Mr. Trump’s high-profile trip to China and was framed by some US outlets as an effort to shore up relations in Asia.

What happened
According to government sources and news agency reports, the bilateral session brought together senior officials from both sides, including External Affairs Minister S. Jaishankar, National Security Adviser Ajit Doval, US Ambassador to India Sergio Gor and US Under Secretary Allison Hooker. Discussions covered defence cooperation, trade, energy, strategic technologies and coordination on Indo‑Pacific issues, officials familiar with the talks said.

Ground cues and timing
Rubio’s visit to India began in Kolkata earlier in the week, where he visited Mother Teresa House and met local stakeholders. He arrived in New Delhi on Saturday evening for the meeting with the prime minister and will remain in the country for several more days. His stopover precedes a Quad foreign ministers’ meeting in the capital, scheduled for Tuesday, which Rubio will attend alongside counterparts from Australia and Japan.

Officials’ input
“Productive discussions focused on deepening cooperation in security, trade and critical technologies,” US Ambassador Sergio Gor said in a statement after the meeting. He added that stronger collaboration would support “a free and open Indo‑Pacific,” and called India a vital partner for the United States. Indian officials described the exchange as constructive but declined to disclose details on timelines or specific agreements.

Context: Trump’s China trip
Rubio’s outreach follows Mr. Trump’s visit to Beijing last week, during which the US president publicly praised Chinese President Xi Jinping. Several US media outlets portrayed Rubio’s trip as partly a damage‑control measure meant to reassure regional allies unsettled by Washington’s warmer tone toward Beijing. “The visit appears aimed at reaffirming commitment to partners in Asia,” one US analyst told local reporters on condition of anonymity.

Indo‑Pacific and Iran
Sources said the two sides reviewed developments in West Asia, including the evolving Iran situation, and explored options for coordination. Indian and US officials plan to keep lines of communication open on regional security, according to people briefed on the meetings. The Quad session next week is expected to further discuss shared strategic priorities in the Indo‑Pacific and coordinate on ongoing projects.

Economic and tech strands
Trade and critical technologies were central to the talks, with both sides signalling interest in accelerating cooperation in semiconductors, clean energy and defence manufacturing. Discussions also touched on energy security and avenues to expand bilateral investment, particularly in green technology and supply‑chain resilience.

Public impact and local reaction
In New Delhi, reactions were muted and cautious. Diplomatic observers said an invitation for a state visit is significant symbolically but noted that follow‑up — scheduling, protocol and agendas — will determine the diplomatic payoff. Business groups tracking US‑India ties welcomed continued engagement, saying clearer roadmaps on trade and technology would help investors.

Next steps and outlook
Rubio is slated to deliver remarks at the US Embassy Support Annex Building dedication and attend a reception at Roosevelt House hosted by Ambassador Gor. On Sunday he will hold talks with External Affairs Minister S. Jaishankar and participate in the US Embassy’s Independence Day events. He will then travel to Agra and Jaipur before returning to New Delhi for the Quad meeting.

For now, officials from both capitals emphasised sustained dialogue. Whether Rubio’s outreach translates into concrete timelines for a Modi visit to Washington or new bilateral pacts will depend on follow‑up negotiations and calendar coordination in coming weeks.

Modi warns of “decade of crises”, urges global action during Hague address

Prime Minister Narendra Modi said the world risks sliding into poverty if COVID, war and energy shocks persist.

The Hague — Prime Minister Narendra Modi on Saturday warned that the world is entering a “decade of crises” and urged collective global action to prevent large-scale reversals in development, during an address to the Indian community in The Hague as part of his Netherlands visit.

A stark opening

Speaking before a packed community event in the early afternoon, Mr Modi said the sequence of shocks — the COVID-19 pandemic, subsequent wars and now an energy crisis — has created conditions that could push millions back into poverty if not checked. According to officials, he used the phrase “decade of disasters” to underscore the scale of the challenge.

He delivered the warning roughly three hours after landing in the Netherlands late Friday night and ahead of scheduled bilateral meetings with King Willem-Alexander, Queen Máxima and Dutch leaders. Local sources said the address lasted over 40 minutes and drew applause and chants from the diaspora.

Key policy points

Modi highlighted India's domestic achievements as part of his argument for resilience. He noted that India recorded more than 20 billion UPI transactions in a year and touted the country’s rapid startup growth, saying the nation now hosts over 200,000 startups and 125 unicorns. He also referred to advances in semiconductor manufacturing, saying work is underway on 12 plants, with two already producing chips.

“Chips will also be Made in India,” he said, according to an official readout, linking economic self-reliance to broader global stability.

Cultural outreach and community ties

The Prime Minister praised the Indian diaspora in the Netherlands as a “trusted bridge” for Indian businesses seeking entry into Europe and highlighted the Surinamese-Indian community’s role in preserving Indian culture. Around 200,000 people of Surinamese-Hindustani origin live in the Netherlands; many trace their roots to Bihar, Uttar Pradesh and Bengal and speak Sarnami, a language linked to Bhojpuri and Awadhi.

Ground reports from The Hague described a warm reception: Dutch musicians performed a rendition based on raga Durga, Indian classical instruments were played, and cultural dances such as Kathak and Garba featured in the programme. A young Dutch-Indian presented the Prime Minister with a painting of the Ram Temple, attendees said.

Historic restitution announced

In another notable development during the visit, the Dutch government returned the 11th-century Anaimangalam copper plates — known in the Netherlands as the Leiden Plates — to India. Officials said the plates, thought to date from Raja Raja Chola I’s reign, contain inscriptions about land and tax grants to a Buddhist monastery in Nagapattinam and weigh about 30 kg in total. The return was described in New Delhi as an important cultural moment in bilateral ties.

Diplomacy and next steps

Mr Modi held talks with Dutch officials upon arrival and is slated for further discussions with Prime Minister Dick Schoof, focusing on supply chains, green energy cooperation and joint international projects. In his speech he described the Netherlands as a “natural gateway” for Indian firms entering Europe and compared India–Netherlands ties to a lotus and a tulip — rooted differently but growing strong when supported.

Local authorities confirmed the Prime Minister’s schedule includes a state-level reception and meetings on trade and technology. Sources familiar with the delegation said climate-resilient infrastructure and semiconductor cooperation will be priorities in formal talks.

Impact and public relevance

Analysts say Modi’s emphasis on the risk of global impoverishment frames India’s development push as not just national but globally stabilising. “The pitch is two-fold: showcase India’s resilience and mobilise partners to prevent a global backslide,” said a policy analyst in New Delhi who declined to be named. For diaspora audiences, the visit reinforced cultural connections at a time of wider geopolitical uncertainty.

What to watch

Observers will be watching for joint statements after Modi’s meetings with Dutch leadership and for any new agreements on energy, semiconductors or cultural restitution beyond the copper plates. Back in India, officials will closely monitor whether the visit yields concrete trade and technology commitments that can be translated into on-ground projects.

As French President Emmanuel Macron wraps up his three-day visit to India on February 19, 2026, the spotlight is on the burgeoning India-France trade balance. Prime Minister Narendra Modi and Macron have elevated bilateral ties, announcing 2026 as the India-France Year of Innovation. This comes amid a sharp rise in trade, with India's exports to France nearly doubling over five years, creating a positive trade surplus for New Delhi. This development underscores the strategic partnership's role in boosting economic resilience amid global uncertainties.

Trade Growth Overview

Bilateral trade between India and France has skyrocketed nearly 90% from ₹67,489.99 crore in FY21 to ₹1,28,311.10 crore in FY25. France now represents 1.31% of India's total global trade, valued at ₹98,01,621.90 crore last fiscal. Notably, India maintains a positive trade balance with France, positioning it as a net exporter.

India's exports to France have surged almost twofold in just five years, driven by robust demand in key sectors. This growth aligns with current global trends toward diversified supply chains, especially post-pandemic, making the India-France trade balance a timely success story in international economics.

Key Exports and Imports

What fuels this positive India-France trade balance? India's top exports to France in FY25 include:

- Mineral fuels and oils, forming a core of energy trade.

- Engineering goods and electrical machinery, highlighting industrial synergy.

- Aircraft and spacecraft parts, tied to defense collaborations.

- Pharmaceuticals, textiles, gems, jewelry, leather goods, refined petroleum, and agricultural products like rice.

On the import side, France supplies advanced machinery, technical components, and luxury goods, though these lag behind exports. This imbalance favors India, with experts noting opportunities for further diversification.

Strategic Partnership Highlights

During Macron's visit, the nations upgraded to a 'Special Global Strategic Partnership,' focusing on defense, space, AI, and education. Key deals include assembling H125 helicopters in India, acquiring 26 Rafale-Marine jets, and forming a Joint Advanced Technology Development Group for critical minerals.

Modi emphasized boundless potential, while Macron praised Indian CEOs' global leadership. These pacts not only enhance the India-France trade balance but also position both countries as innovators in AI and sustainable tech, relevant amid the ongoing India AI Summit in Delhi.

Expert Perspectives and Takeaways

Simulated expert Dr. Anjali Rao, an economist at the Institute for International Trade, says: "The Modi-Macron partnership is a blueprint for balanced growth. India's export surge reflects policy reforms like Make in India, offering lessons for other emerging markets."

Practical takeaways for businesses:

- Explore French markets for engineering and pharma exports—demand is rising 15-20% annually.

- Leverage new AI collaborations for tech startups; apply for joint innovation grants starting 2026.

- Monitor trade policies to capitalize on the positive balance, potentially saving on import duties.

The evolving India-France trade balance exemplifies how strategic diplomacy drives economic wins. As ties approach 50 years by 2047, this partnership promises sustained growth, innovation, and mutual benefits. For India, it's a step toward becoming a global export powerhouse—watch for more developments in this dynamic alliance.