Reports - India Active Pharmaceutical Ingredients (API) Market
India Active Pharmaceutical Ingredients (API) Market Size, Share & Trends Analysis Report by Business Mode (Captive API, Merchant API) by Synthesis Type (Synthetic, Biotech) by Drug Type (Generic, Branded) by Application (Cardiology, Oncology, Pulmonology, Neurology, Orthopedic, Ophthalmology, Other Applications) - Historic Data (2021 - 2023) & Forecast Period (2025 - 2035)
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USD 13.6 Billion
USD 32.03 Billion
8.1%
X
X
2024
2021 - 2023
2025 - 2035
By Business Mode, By Synthesis Type, By Drug Type, By Application
The final deliverable will encompass both quantitative and qualitative data, providing a comprehensive analysis of the market. The scope is customizable.
The India Active Pharmaceutical Ingredients (API) Market is valued at USD 13.6 Billion in 2024 and is projected to reach a value of USD 32.03 Billion by 2035 at a CAGR (Compound Annual Growth Rate) of 8.1% between 2025 and 2035.
India has launched around 21 projects to produce key active pharmaceutical ingredients under the production-linked incentive (PLI) scheme, with a combined installed capacity of 33,895 tonnes. These projects focus on essential bulk drugs such as Para Amino Phenol (for paracetamol), Atorvastatin (for cholesterol), antibiotics like Sulfadiazine and Levofloxacin, and antivirals like Lopinavir. Notable companies include Meghmani and Sadhana Nitro Chem, with capacities of 13,500 and 12,000 tonnes for Para Amino Phenol, respectively. Hetero is producing four different APIs, and Hindys Lab has a 3,000-tonne capacity for 1,1 Cyclohexane Diacetic Acid (an intermediate for gabapentin). Despite this growth, Indian API costs remain 20-25% higher than Chinese imports, affecting price competitiveness.
India is a leading player in the global API market, producing over 500 different APIs and holding an 8% share of the global industry and contributes 57% to the WHOs prequalified list. The pharmaceutical sector is a top destination for foreign investment, with exports reaching over 200 countries, including regulated markets like the USA, West Europe, Japan, and Australia. Notably, India supplied around 45 tonnes and 400 million tablets of hydroxychloroquine to 114 countries.
In FY24 (April-January), India’s pharmaceutical exports hit USD 22.51 billion, marking an 8.12% year-on-year growth. January 2024 alone saw exports worth USD 2.13 billion, 5.8% of total exports for the month. Rising tensions between the West and China have increased global reliance on India for bulk drugs. As the world’s largest provider of generic medicines, India exported USD 25.36 billion worth of drugs and pharmaceuticals in FY23. To foster innovation, India has raised the FDI limit to 100% for Greenfield projects and introduced new IP protection strategies.
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The Indian API market is relatively fragmented, with many manufacturers aiming to expand their presence through collaborations, facility expansions, and drug approvals. The increasing activities of companies in developing branded drugs are boosting the demand for APIs in India. For example, in October 2022, Glenmark launched a fixed-dose combination of Teneligliptin and Dapagliflozin to treat type-2 diabetes in adults. Key players in the market include Aurobindo Pharma, Teva Pharmaceutical Industries Ltd, Lupin Ltd, Viatris Inc., Sun Pharmaceuticals Limited, and Dr. Reddys Laboratories Ltd. These companies are actively adopting strategies to strengthen their market position.
The India Active Pharmaceutical Ingredients (API) market is segmented as Business Mode, Synthesis Type and Application
Parameter | Details |
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Segment Covered | By Business Mode
By Synthesis Type
By Drug Type
By Application
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Companies Covered |
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