India Active Pharmaceutical Ingredients Market, By Manufacturer (Captive AP I and Merchant API), By Synthesis Type (Synthetic and Biotech), By Drug Type (Generic and Branded), By Application (Cardiology, Oncology, Pulmonology, Neurology, Orthopedic, Ophthalmology, and Other), By Product Type (Low Potent APIs and High Potent APIs), By Formulation (Oral, Topical, Parenteral, Drops, and Others)

Published In : Aug 2024

Code : CMI4785

Pages :325

Formats :

Excel and PDF

Industry : Pharmaceutical

India Active Pharmaceutical Ingredients Market Size and Trends

India active pharmaceutical ingredients market is estimated to be valued at USD 13.72 Bn in 2024 and is expected to reach USD 23.10 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 7.7% from 2024 to 2031.

India Active Pharmaceutical Ingredients Market Key Factors

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There has been huge demand for generic drugs in the country. The government has also taken initiatives to promote local manufacturing like launching the 'Pharmaceuticals Vision 2020' and coming up with Production Linked Incentive (PLI) schemes. This has attracted global pharmaceutical players to partner with local API manufacturers or set up manufacturing units in India. Indian players have enhanced their capabilities to cater to international markets and meet stringent quality standards. The country accounts for around 30% of global exports of generic medicines. This trend can make India a global API manufacturing hub.

Growth in healthcare expenditure in India

With rapid economic growth and rising incomes, healthcare expenditure in India has increased significantly over the past decade. Various government initiatives aim to expand healthcare access for citizens and provide universal healthcare. The government's Ayushman Bharat program is one of the largest publicly funded healthcare systems in the world. This will enable people to avail cashless healthcare services and treatments. As more people gain insurance coverage and have ability to pay, there will be huge demand for pharmaceutical products. The program along with other state-led health insurance schemes are expected to boost consumption of medicines for chronic as well as acute ailments. This can boost demand for active pharmaceutical ingredients, which forms the key raw material input for drug manufacturing. Due to rising awareness about benefits of timely treatment increases, preventive healthcare is gaining traction. This can increase offtake of generic as well as patented drugs in the country.

India Active Pharmaceutical Ingredients Market Concentration By Players

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Increasing investments by global pharmaceutical players

India has emerged as one of the leading locations for active pharmaceutical ingredients (API) production globally. The country accounts for 20% of total global antiretroviral drug production. It is the largest provider of generic medicines worldwide, with the Indian generics accounting for 20% of global exports. Seeing strong growth prospects and affordable skilled labor, many large multi-national pharmaceutical companies have significantly ramped up investments in India over the past few years.

These have set up advanced API manufacturing facilities as well as research & development centers to cater to domestic as well as international markets. Leading players like Dr. Reddy's, Aurobindo Pharma and Sun Pharma are undertaking massive capacity expansion projects. This enables companies to increase scale as well as integration along the pharmaceutical value chain within the country. Growing investments can expand domestic API production capabilities as well as boosts technology upgrades. This attracts even more investments, creating a positive cycle that benefits development of the Indian pharmaceutical industry. Increased investments coupled with cost competitiveness can make India an essential global API supplier.