June 18, 2024
India Active Pharmaceutical Ingredients Market

India Active Pharmaceutical Ingredients Market Set For Rapid Growth Owing to Rising Generic Drugs Market

The India active pharmaceutical ingredients (API) market comprises products such as bulk drugs or raw materials that are used by pharmaceutical companies as inputs to produce finished dosage forms of drugs. API serves as an crucial component in manufacturing medicines and plays a vital role in treating diseases. The growing generic drugs sector in India has increased the demand for APIs, given their cost-effectiveness as compared to branded drugs.

The India Active Pharmaceutical Ingredients Market Size 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 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 key opportunities in the market include growing penetration of health insurance, increasing popularity of generics over branded drugs and rising investment by global pharmaceutical companies in the domestic API sector. These favorable factors are expected to boost revenue potential for API manufacturers.

Globally, the India API market is expanding significantly with growing collaboration between domestic and international companies. Many Indian API producers are strengthening their presence abroad through exports. At the same time, large foreign drug makers are investing heavily in setting up API units in India to take advantage of the low-cost manufacturing environment and tap the burgeoning domestic demand.

Market drivers

The rising generic drugs market in India is one of the key drivers propelling revenue growth of API producers. Strong pipeline of generic drugs approvals, favorable government policies supporting generics and increasing accessibility of healthcare has accelerated generic drugs penetration in India. This has augmented the demand for APIs used in generic formulations over the last few years. The rapid uptake of generic drugs in India is projected to continue driving API consumption going ahead.

PEST Analysis
Political: The Indian government has implemented various initiatives to boost domestic API manufacturing. Regulations aim to reduce reliance on imports and make the country self-reliant in pharmaceutical production.

Economic: Growth of the pharmaceutical industry and rising healthcare expenditure in India present lucrative opportunities. However, high production costs initially pose challenges for local manufacturers to compete with imported APIs.

Social: Rising income levels and health awareness among Indian consumers drive the demand for medicines. This increases the need for safe, high-quality and affordable active pharmaceutical ingredients.

Technological: Manufacturers focus on continuous process R&D to develop innovative production techniques. Adopting advanced equipment enables improved process automation, reduced waste and higher yields to meet evolving industry and regulatory standards.

The western region of India accounts for the largest share of the active pharmaceutical ingredients market in terms of value. States like Maharashtra and Gujarat have emerged as major pharma hubs owing to the availability of skilled labor, infrastructure and supporting industrial clusters.

The southern region, especially Andhra Pradesh, Karnataka and Telangana, is poised to witness the fastest growth over the forecast period. Initiatives to promote pharmaceutical production through incentive schemes attract domestic as well as global manufacturers to set up manufacturing bases in these states.

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