India Active Pharmaceutical Ingredient Market 2024–2033

Reports Description

India Active Pharmaceutical Ingredient Market was valued at USD 9.6 Billion in 2024 and is expected to reach USD 21.2 Billion by 2033, at a CAGR of 9.3% during the forecast period 2024 – 2033.

Active Pharmaceutical Ingredient (API) refers to the biologically active component of a pharmaceutical drug. It is the part of the drug that produces the intended therapeutic effect. APIs can be synthesized chemically or derived from natural sources, such as plants or animals.

India Active Pharmaceutical Ingredient Market: Growth Factors

Increase in geriatric population

The increase in India’s geriatric population has been a significant driving force behind the country’s active pharmaceutical ingredients (APIs) market. As the elderly population grows, there is a corresponding rise in the prevalence of age-related health conditions and chronic diseases, such as cardiovascular diseases, diabetes, and neurological disorders.

This demographic shift creates a higher demand for pharmaceutical products, including APIs, which are the key components responsible for the therapeutic effects of drugs. To meet this growing demand, the pharmaceutical industry in India is increasingly focusing on the development and production of APIs.

Additionally, the aging population often requires medications in specific formulations and dosages tailored to their needs, further emphasizing the need for a robust API market. Moreover, advancements in medical research and technology have led to the development of innovative drugs targeting age-related ailments, necessitating the production of specialized APIs.

As per the report, there were 149 million persons aged 60 years and above in 2022 (as of 1 July), comprising around 10.5% of the country’s population by 2050, this population will double to 20.8%, with the absolute number at 347 million.

Growing chronic diseases

The increase in chronic diseases has propelled India’s active pharmaceutical ingredients (APIs) market due to the growing demand for medications to treat these conditions. Chronic diseases such as diabetes, cardiovascular disorders, cancer, and respiratory ailments have become significant health concerns in India, driven by factors like changing lifestyles, urbanization, and an aging population.

As a result, there is a heightened need for pharmaceutical products, including APIs, which are the key components responsible for the therapeutic effects of medications. India’s pharmaceutical industry has strategically positioned itself as a global leader in API production, leveraging its cost-effective manufacturing capabilities, skilled workforce, and robust regulatory framework.

With the rise in chronic diseases, pharmaceutical companies in India are focusing on expanding their API manufacturing capacity to meet domestic demand and cater to the increasing export market.

Moreover, advancements in artificial intelligence (AI) and machine learning are being increasingly integrated into pharmaceutical manufacturing processes to enhance efficiency, quality control, and drug discovery, contributing to the expansion of India’s API market.

Overall, the surge in chronic diseases has not only intensified the demand for APIs in India but also catalysed innovation and technological adoption in the pharmaceutical industry, driving its growth and competitiveness on the global stage.

India Active Pharmaceutical Ingredient Market: Restraints

Limited availability of raw materials

The market for active pharmaceutical ingredients (APIs) in India is severely hampered by a scarcity of raw materials. Despite India’s significant position as a worldwide pharmaceutical manufacturing hub, its reliance on imported raw materials, particularly for some specialized APIs, poses a risk.

This reliance on foreign sources for critical materials increases manufacturing costs while also exposing the sector to supply chain disruptions and geopolitical concerns. The shifting availability and costs of raw materials can disrupt the market, affecting the affordability and accessibility of critical medicines both domestically and internationally.

Furthermore, high quality standards and regulatory requirements exacerbate the issues, as assuring the uniformity and purity of APIs becomes increasingly difficult when getting ingredients from varied vendors.

To reduce these risks and foster a resilient API market, there is an urgent need for strategic investments in domestic production capabilities, substitute synthetic route research and development, and partnerships between industry stakeholders and policymakers to promote self-sufficiency and creativity in raw material sourcing and manufacturing processes.

India Active Pharmaceutical Ingredient Market: Opportunities

Integration with automation

Integration with automation is revolutionizing India’s active pharmaceutical ingredients (API) market by enhancing efficiency, consistency, and scalability in manufacturing processes. Automation technologies such as robotic systems, machine learning algorithms, and advanced analytics are streamlining production, reducing human error, and optimizing resource utilization.

This integration enables pharmaceutical companies to meet the increasing demand for APIs with greater speed and precision while maintaining stringent quality standards. Automated systems facilitate continuous monitoring and control of critical parameters throughout the production cycle, ensuring the consistent quality of APIs.

Furthermore, automation enhances the agility of manufacturing facilities, allowing rapid adaptation to changing market demands and regulatory requirements. By leveraging automation, Indian pharmaceutical companies can enhance their competitiveness in the global market, improve cost-effectiveness, and accelerate innovation in API development and production, thereby driving growth and sustainability in the industry.

India Active Pharmaceutical Ingredient Market: Segmentation Analysis

India Active Pharmaceutical Ingredient market is segmented by type, application and region.  Based on type, the market is classified into Generic API and Innovative API. Innovative API dominated the market in 2023 with a market share of 65.3% and is expected to keep its dominance during the forecast period 2024-2033.

Innovative API (Active Pharmaceutical Ingredient) technologies are reshaping India’s pharmaceutical landscape, particularly in the realm of artificial intelligence (AI). By leveraging AI algorithms for drug discovery, process optimization, and quality control, Indian pharmaceutical companies are revolutionizing the production of APIs.

These technologies expedite drug development timelines by predicting molecular interactions, identifying potential drug candidates, and optimizing synthesis pathways. Moreover, AI-driven platforms enable the analysis of vast datasets to uncover hidden correlations and patterns, facilitating the identification of novel drug targets and formulation strategies.

This not only accelerates the development of new APIs but also enhances the efficiency of existing manufacturing processes, leading to cost reductions and improved product quality. Furthermore, AI-powered predictive maintenance systems ensure equipment reliability and minimize downtime, thereby enhancing productivity and reducing operational expenses.

As a result, India’s API market is witnessing significant growth driven by these innovative technologies, positioning the country as a leader in pharmaceutical innovation and manufacturing.

Based on application, the market is classified into cardiovascular diseases, oncology, CNS and neurology, orthopaedic, endocrinology, pulmonology, gastroenterology, nephrology, ophthalmology and others. Cardiovascular diseases dominated the market in 2023 with a market share of 55.9% and are expected to keep their dominance during the forecast period 2024-2033.

Cardiovascular diseases (CVDs) have been a significant driver of the active pharmaceutical ingredients (APIs) market in India due to the country’s high burden of these conditions. As India grapples with a growing incidence of cardiovascular disorders, there is a heightened demand for APIs used in the production of medications to manage and treat these diseases.

The prevalence of risk factors like sedentary lifestyles, poor dietary habits, smoking, and stress contribute to the rising incidence of CVDs, leading to a continuous need for cardiovascular medications. This creates a lucrative market opportunity for Indian pharmaceutical companies specializing in API production, driving investments in research, development, and manufacturing infrastructure focused on cardiovascular drugs.

Moreover, India’s cost-effective manufacturing capabilities position it as a leading exporter of APIs, catering not only to domestic demand but also supplying international markets, particularly in regions facing similar health challenges but seeking affordable treatment options.

Consequently, the synergy between India’s significant burden of cardiovascular diseases and its prowess in API production fosters a robust and dynamic market for cardiovascular medications, further solidifying the country’s position as a key player in the global pharmaceutical industry.

Report Scope

India Active Pharmaceutical Ingredient Market: Regional Analysis

By region, the Active Pharmaceutical Ingredient  market is segmented into East India, West India, North India and South India. West India dominated the India Active Pharmaceutical Ingredient market in 2023 with a market share of 40.5% and is expected to keep its dominance during the forecast period 2024-2033.

The West India region drives the active pharmaceutical ingredients (API) market in India through a combination of factors, including robust infrastructure, skilled workforce, and strategic geographical location. Maharashtra, with its well-established pharmaceutical industry clusters in Mumbai and Pune, leads the charge by hosting numerous API manufacturers and research institutions.

Gujarat, another key player in the West, boasts a favourable business environment and a strong chemical manufacturing base, making it an attractive destination for API production.

Additionally, the region’s proximity to major ports facilitates efficient import and export operations, enabling seamless integration with global pharmaceutical supply chains. Furthermore, initiatives like the Gujarat Pharma Vision 2020 and Maharashtra Industrial Policy have provided incentives and support for the growth of the pharmaceutical sector, fostering innovation and competitiveness.

Through collaborative efforts between industry stakeholders, academia, and government agencies, the West India region continues to shape the API market in India, driving innovation, sustainability, and economic growth in the pharmaceutical sector.

India Active Pharmaceutical Ingredient Market: Recent Developments

• In August 2023, EUROAPI announced its deal to acquire BianoGMP to enhance its CDMO expertise in oligonucleotide manufacturing, which is a high-growth industry.

• In July 2023, Teva Pharmaceutical Industries Ltd. designed a new strategy for development with the potential sale of its API unit on the table. The API manufacturing facility is worth USD 2 billion.

List of the prominent players in the India Active Pharmaceutical Ingredient Market:

• Aurobindo Pharma Ltd.
• Cadila Pharmaceuticals Ltd.
• Cipla Ltd.
• Divis Laboratories Ltd.
• Dr Reddys Laboratories Ltd.
• Glenmark Pharmaceuticals Ltd.
• Granules India Ltd.
• Hetero Labs Ltd.
• Ind Swift Laboratories Ltd.
• IOL Chemicals and Pharmaceuticals Ltd.
• Ipca Laboratories Ltd.
• JB Chemicals and Pharmaceuticals Ltd.
• Jubilant Pharmova Ltd.
• Laurus Labs Ltd.
• Lupin Ltd.
• Solara Active Pharma Sciences Ltd.
• Sun Pharmaceutical Industries Ltd.
• Suven Pharmaceuticals Ltd.
• Torrent Pharmaceuticals Ltd.
• Others

These key players are adopting various growth strategies such as mergers & acquisitions, joint ventures, expansion, strategic alliances, new product launches, etc. to enhance their business operations and revenues.

The India Active Pharmaceutical Ingredient Market is segmented as follows:

By  Synthesis

• Biotech
  • By Type
    • Generic APIs
    • Innovative APIs
  • By Product
    • Monoclonal Antibodies
    • Hormones
    • Cytokines
    • Recombinant Proteins
    • Therapeutic Enzymes
    • Vaccines
    • Blood Factors
• Synthetic
  • By Type
    • Generic APIs
    • Innovative APIs

By Manufacturer

• Captive APIs
• Merchant APIs

By Type

• Generic APIs
• Innovative APIs

By Application

• Cardiovascular Diseases
• Oncology
• CNS and Neurology
• Orthopaedic
• Endocrinology
• Pulmonology
• Gastroenterology
• Nephrology
• Ophthalmology
• Others