The India active pharmaceutical ingredients market has gained immense momentum over the years on account of growing biopharmaceutical industry and increasing generics drug production. API or bulk actives ingredients are an essential component of any drug which are used for preparation of medicines or drugs. Some key advantages of APIs include affordability, potency, safety and efficacy. The rising prevalence of chronic diseases such as cancer, cardiovascular disorders and diabetes have augmented the demand for cost-effective drugs, driving the need for high quality APIs.

The Global India active pharmaceutical ingredients market is estimated to be valued at US$ 27014.17 Bn  in 2024 and is expected to exhibit a CAGR of 21.% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the India Active Pharmaceutical Ingredients Market Size are AVL, Cummins, Inc, Johnson Matthey Battery Systems, L&T Technology Services, Merlin Equipment Ltd., Navitas System, LLC, Nuvation Engineering, The Ventec Company, Toshiba Corporation, TWS (Technology with Spirit), Vecture Inc. The increasing adoption of green technologies for API manufacturing is one of the major opportunities for manufacturers in India. Players are increasingly focusing on developing sustainable technologies like continuous processing, artificial intelligence, 3D printing etc for reducing carbon footprint in production. Technological advancements such as multi-step flow synthesis, enzymatic synthesis and green chemistry are also gaining traction in the industry.

Market Drivers

The rapid growth of the Indian pharmaceutical industry : India is the largest provider of generic medicines globally with the Indian pharmaceutical sector supplying over 50% of global demand for various vaccines. The cost effectiveness and expanse of the pharmaceutical industry has been one of the key factors propelling the demand for APIs

Rising prevalence of chronic diseases: Chronic diseases which require long term or lifelong treatment like cardiovascular disease, cancer, and diabetes have been on the rise. This has significantly contributed to the growth of the API market with increased production of generic drugs.

Growing geriatric population: India has one of the largest aging populations worldwide which is more prone to chronic ailments. This has augmented the healthcare expenditure and demand for cost effective pharmaceuticals and their core components, APIs.

Current challenges in India Active Pharmaceutical Ingredients Market
The India Active Pharmaceutical Ingredients (API) market is currently facing several challenges that are hindering its growth. Firstly, the regulatory framework for API manufacturing in India is still developing and many companies find it difficult to comply with the stringent regulatory standards. This leads to delays in approval processes. Secondly, the reliance on imports of key starting materials (KSMs) from China makes the industry vulnerable to supply chain disruptions. Developing indigenous capabilities for KSM manufacturing remains a challenge. Thirdly, the price control imposed by the government on some essential APIs is putting pricing and profitability pressures on companies. Lastly, skill shortage is a significant issue as specialized training facilities for API manufacturing are still limited in the country. Companies face challenges in attracting and retaining talent.

SWOT Analysis
Strength: India has a strong base of pharma companies and manufacturers who have proven capabilities in formulation development and generic drug manufacturing. The country also has a large pool of scientists and engineers to support the growth of the API industry.
Weakness: Over-dependence on China for import of key starting materials. High costs associated with complying with stringent global quality standards. Limited indigenous capabilities for complex, technology-intensive APIs.
Opportunity: Growing global demand for affordable generic drugs provides opportunities for Indian exporters. Shift of production away from China can boost investments in India. Government schemes to promote domestic manufacturing of KSMs and APIs.
Threats: Intense global competition from other emerging markets like China. Stringent environmental regulations pose risks of capacity constraints. Potential interruptions in Chinese imports due to geopolitical issues.

Geographical regions
North America region currently accounts for the largest share in the global India Active Pharmaceutical Ingredients market. This is mainly attributed to the presence of well-established pharmaceutical companies and massive R&D investments in the region. The United States holds the major market share in the North America API market.

The Asia Pacific region excluding India is expected to record the fastest growth during the forecast period. This can be attributed to expansion of API manufacturing capacities by Indian companies in countries like China, Japan, and South Korea to cater to the increasing demand in Asia Pacific.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it