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India's Active Pharmaceutical Ingredients (API) market is a vital segment of the country's growing pharmaceutical industry, positioning India as one of the largest API producers globally. With a population exceeding 1.4 billion, the demand for pharmaceuticals in India has been rising, fueled by an aging population and the increasing burden of non-communicable diseases such as diabetes, hypertension, and cancer. This surge in demand has driven the Indian API market, with a shift towards generic drugs, which are affordable and more accessible for the majority of the population. India's API sector has been bolstered by a favorable regulatory environment, with the Central Drugs Standard Control Organization (CDSCO) overseeing the production and quality standards. the The government has implemented policies to promote self-sufficiency in API production and reduce dependence on imports, particularly from China, which has historically been a significant supplier of raw materials. One key policy, the “Pharma Vision 2020,” aims to make India a global leader in drug manufacturing and to enhance the API sector’s competitiveness by promoting research and development in active ingredients. The government has also introduced the Production-Linked Incentive (PLI) scheme to boost domestic production, especially of high-value and specialized APIs, as part of a broader strategy to strengthen the country’s pharmaceutical supply chain. India’s expertise in chemical synthesis and cost-effective manufacturing practices has contributed to its global leadership in the API market. The country has become the go-to supplier for generic drugs, with APIs being exported to various regions, including North America, Europe, and Africa. However, the industry faces challenges related to environmental concerns, as the chemical manufacturing process can lead to the generation of hazardous waste, leading to increasing regulatory scrutiny. The rising cost of raw materials and the volatility of exchange rates are affecting the pricing strategies of API producers. Despite these challenges, India’s API industry continues to grow, supported by continuous investment in R&D, technological advancements, and the government’s focus on strengthening its domestic pharmaceutical manufacturing capabilities. As a result, India is poised to maintain its critical role in the global API market, providing affordable and high-quality ingredients to pharmaceutical manufacturers worldwide.
According to the research report, "India Active Pharmaceutical Ingredients Market Overview, 2030," published by Bonafide Research, the India active pharmaceutical ingredients market is anticipated to add to more than USD 6.84 Billion by 2025–30. India is one of the largest global producers of APIs, contributing to over 50% of global demand for generic APIs, especially in key therapeutic segments such as antibiotics, anti-inflammatory drugs, and cardiovascular medications. The country's robust manufacturing infrastructure, skilled workforce, and cost-effective production capabilities have established India as a major player in the API market. The increasing prevalence of non-communicable diseases such as diabetes, hypertension, and cancer, combined with an aging population, is further driving the demand for pharmaceutical products. The growing shift toward biosimilars and biotechnology-based drugs is creating new opportunities in India’s API sector. India has also been focusing on reducing its dependency on China for raw materials, especially after disruptions in the supply chain caused by the COVID-19 pandemic. The government has introduced several initiatives, including the Pharmaceuticals Development Scheme, which aims to boost the domestic production of essential APIs and reduce reliance on imports. In terms of key market players, major companies such as Dr. Reddy’s Laboratories, Sun Pharmaceutical Industries, Aurobindo Pharma, Lupin Pharmaceuticals, Torrent Pharmaceuticals, and Cadila Healthcare dominate the market. These companies cater to both domestic needs and export demands, which are particularly strong in Africa, the Middle East, Asia-Pacific, and North America. New entrants are also emerging, particularly in the biosimilars and biopharmaceuticals sectors, responding to increasing demand for affordable alternatives to biologic therapies. India’s API exports have been vital to the global supply chain, but the COVID-19 pandemic exposed vulnerabilities in reliance on foreign raw materials, especially from China.
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In India, the Active Pharmaceutical Ingredients (API) market is one of the largest in the world, driven by the dominance of synthetic APIs, which are essential to the country’s pharmaceutical manufacturing capabilities. Synthetic APIs are widely used in the production of generic medications that treat common health conditions such as infections, diabetes, hypertension, and pain management. Due to their cost-effectiveness, synthetic APIs are critical in India’s healthcare system, where affordability and accessibility are key priorities, especially in the public sector. India’s large domestic market, coupled with its position as a major exporter of generic drugs globally, makes synthetic APIs a cornerstone of the country’s pharmaceutical industry. On the other hand, biotech APIs, though smaller in comparison, are seeing increasing adoption as India expands its focus on biotechnology and more specialized treatments. Biotech APIs are derived from living organisms through processes like fermentation and genetic engineering, and they are used in the production of biologics such as monoclonal antibodies, vaccines, and gene therapies. These biologic drugs are vital for the treatment of complex diseases such as cancer, autoimmune disorders, and genetic conditions, where traditional synthetic drugs may not be as effective. India’s growing investment in biotechnology and research is driving the expansion of the biotech API sector, and the country is increasingly seen as a hub for the production of biosimilars, which are affordable alternatives to branded biologics. As India’s population grows and the prevalence of chronic diseases increases, the demand for both synthetic and biotech APIs is expected to rise. While synthetic APIs will continue to dominate the market due to their affordability and widespread use, biotech APIs are poised for greater growth as India’s pharmaceutical industry shifts towards more advanced, targeted therapies for complex and chronic conditions.
The Active Pharmaceutical Ingredient (API) market in India is a major component of the global pharmaceutical industry, driven by both captive and merchant manufacturing models. Captive manufacturing, where pharmaceutical companies produce APIs in-house, is gaining momentum among major Indian companies like Sun Pharma and Dr. Reddy’s Laboratories, enabling them to maintain quality control, reduce production costs, and ensure a consistent supply of APIs. This approach is especially significant in light of global supply chain disruptions, which have underscored the importance of local production. However, merchant manufacturing also plays a vital role in India’s API market, as it involves sourcing APIs from external suppliers, particularly from countries like China, where production costs are lower. This model helps meet the large demand for generic drugs in India, where the availability of cost-effective medications is crucial for the country’s healthcare system. The API market in India is predominantly driven by generic APIs, which account for the majority of the pharmaceutical production. With the expiration of patents for many high-cost branded drugs, India has become a global leader in the production of generic drugs, offering affordable alternatives that are widely distributed both domestically and internationally. Generic APIs cater to a range of therapeutic areas, including cardiovascular diseases, diabetes, and infectious diseases, which are prevalent in India. While generic APIs dominate the market, there is also a growing demand for branded or innovative APIs, particularly in more specialized therapeutic areas such as oncology, immunology, and biologics. The need for innovative APIs is increasing as India’s healthcare sector develops, driven by a rising incidence of chronic diseases and the demand for more advanced treatments. In terms of drug types, prescription drugs make up the largest portion of India’s API market, driven by the country’s aging population and the growing burden of chronic diseases such as diabetes, hypertension, and cancer. Meanwhile, the over-the-counter (OTC) drug market is also expanding, as more consumers turn to self-care solutions for common health issues like pain relief, cold and flu, and digestive disorders. This shift toward preventive healthcare and self-medication has contributed to the growing demand for APIs in OTC drugs, further driving the expansion of the API market in India. With its robust manufacturing capabilities, both domestically and through imports, India remains a key player in the global API market, supplying affordable medications and meeting the evolving healthcare needs of its population.
In India, the Active Pharmaceutical Ingredients (API) market is experiencing dynamic growth driven by a large population, rising healthcare demands, and an increasing focus on healthcare infrastructure. A key area of growth is the anti-infective API segment, with India facing a high burden of infectious diseases such as tuberculosis, malaria, hepatitis, and seasonal infections, resulting in a continuous demand for APIs in antibiotics, antivirals, and antifungals. Cardiovascular diseases, including hypertension, heart attacks, and strokes, remain a significant public health challenge, with growing awareness leading to increased demand for APIs used in antihypertensive drugs, statins, and blood thinners. The prevalence of metabolic disorders like type 2 diabetes, obesity, and hyperthyroidism is rising due to changing diets and sedentary lifestyles, driving the need for APIs in medications aimed at blood sugar control, weight management, and thyroid treatments. The oncology market in India is also expanding, fueled by the increasing incidence of cancers such as breast, lung, and colorectal cancer, leading to higher demand for APIs used in chemotherapy, targeted therapies, and immunotherapies. Neurological disorders, including Alzheimer’s, Parkinson’s, and epilepsy, are becoming more prevalent, contributing to the growing demand for APIs in psychiatric drugs and treatments for neurodegenerative diseases. Respiratory diseases such as asthma, chronic obstructive pulmonary disease (COPD), and pneumonia, aggravated by environmental factors, are also driving the demand for APIs in inhalers, bronchodilators, and corticosteroids. Furthermore, gastrointestinal disorders like irritable bowel syndrome (IBS), gastritis, and ulcers are common, further boosting the need for APIs in digestive health treatments.
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Manmayi Raval
Research Consultant
The difference between Branded/Innovative APIs and Generic APIs fundamentally lies in their function in promoting pharmaceutical innovation and accessibility. Branded/Innovative APIs serve as the foundation for groundbreaking drug development, representing significant research and development (RandD) endeavors. These APIs are usually protected by patents and are linked with original medications that fulfill unmet medical requirements or present new therapeutic strategies. The key motivator here is innovation, as pharmaceutical firms allocate billions towards RandD, clinical trials, and regulatory adherence to successfully launch these APIs. As a result, they are set at higher prices to recoup the considerable investment and to support future innovation. Conversely, Generic APIs are intended to mimic the therapeutic benefits of branded medications once their patents have lapsed. These APIs form the basis of generic drugs, which provide equivalent quality, efficacy, and safety as their branded equivalents but at a markedly lower price. The main reason for their significance is affordability and accessibility. Generic APIs lower healthcare expenses and enhance access to life-saving treatments, especially in low- and middle-income nations. Producers of generic APIs do not incur the substantial RandD costs related to the creation of new medications; instead, they concentrate on reverse-engineering the formula and confirming bioequivalence. This financial benefit enables generic APIs to play a crucial role in global healthcare by alleviating the economic burden of illnesses and ensuring essential medicines are available to a larger population. While branded/innovative APIs propel pharmaceutical innovation by launching advanced therapies, generic APIs are vital in making healthcare accessible. Their cost-effectiveness influences the lives of millions, rendering healthcare systems more sustainable and fairer. This dynamic equilibrium between innovation and accessibility secures the essentiality of both types of APIs in the pharmaceutical sector's objective of enhancing global health outcomes.
The essential difference between Prescription Drugs and Over-the-Counter (OTC) Drugs regarding active pharmaceutical ingredients (APIs) is in the extent of medical oversight needed for their usage. Prescription drugs include APIs that generally address more complicated, chronic, or potentially life-threatening conditions, requiring supervision by healthcare professionals. These medications are designed for personalized patient care and need a doctor's approval because of the risk of serious side effects, interactions, or misuse if not administered properly. The APIs found in prescription drugs often represent leading pharmaceutical research, targeting specific therapeutic needs and providing high effectiveness for exact medical requirements. Consequently, their use is closely regulated, assuring safety and efficacy under professional oversight. Conversely, OTC drugs feature APIs that are designed for self-treatment of minor or common issues, such as headaches, colds, or mild allergies. These medications are regarded as safe and effective when used as directed, without needing involvement from a healthcare provider. The most pivotal reason for their significance is empowering consumers with accessible and convenient healthcare options. OTC drugs help alleviate the strain on healthcare systems by allowing individuals to manage minor health concerns on their own, which frees up resources for more urgent medical situations. Their APIs are generally well-recognized and validated for a wide safety margin, with clear labeling and dosage guidelines minimizing the potential for misuse. While prescription drugs depend on advanced APIs to tackle serious health issues under medical supervision, OTC drugs are propelled by APIs that encourage self-care and availability. Together, they form a harmonious healthcare system, catering to both critical health requirements and everyday health matters. By equipping consumers with trustworthy OTC alternatives, APIs in these medications significantly improve public health outcomes, promoting greater independence in handling routine healthcare needs.
Considered in this report
• Historic year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030
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Aspects covered in this report
• Active Pharmaceutical Ingredients market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation
Based on a synthesis of Active Pharmaceutical Ingredients in the report
• Synthetic API
• Biotech API
Based on the drug type of Active Pharmaceutical Ingredients in the report
• Branded API
• Generic API
Based on the type of manufacture of Active Pharmaceutical Ingredients in the report
• Captive API
• Merchant API
By Therapeutic Application Type in the report
• Communicable Diseases
• Oncology
• Diabetes
• Cardiovascular Disease
• Pain management
• Respiratory Diseases
• Other Therapeutic Applications
The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.
Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Active Pharmaceutical Ingredients industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.
Table of Contents
1. Executive Summary
2. Market Structure
2.1. Market Considerate
2.2. Assumptions
2.3. Limitations
2.4. Abbreviations
2.5. Sources
2.6. Definitions
2.7. Geography
3. Research Methodology
3.1. Secondary Research
3.2. Primary Data Collection
3.3. Market Formation & Validation
3.4. Report Writing, Quality Check & Delivery
4. India Macro Economic Indicators
5. Market Dynamics
5.1. Market Drivers & Opportunities
5.2. Market Restraints & Challenges
5.3. Market Trends
5.3.1. XXXX
5.3.2. XXXX
5.3.3. XXXX
5.3.4. XXXX
5.3.5. XXXX
5.4. Covid-19 Effect
5.5. Supply chain Analysis
5.6. Policy & Regulatory Framework
5.7. Industry Experts Views
6. India Active Pharmaceutical Ingredients Market Overview
6.1. Market Size By Value
6.2. Market Size and Forecast, By Application
6.3. Market Size and Forecast, By Synthesis Type
6.4. Market Size and Forecast, By Type of Manufacture
6.5. Market Size and Forecast, By Region
7. India Active Pharmaceutical Ingredients Market Segmentations
7.1. India Active Pharmaceutical Ingredients Market, By Application
7.1.1. India Active Pharmaceutical Ingredients Market Size, By Anti-infective, 2019-2030
7.1.2. India Active Pharmaceutical Ingredients Market Size, By Cardiovascular, 2019-2030
7.1.3. India Active Pharmaceutical Ingredients Market Size, By Neurological, 2019-2030
7.1.4. India Active Pharmaceutical Ingredients Market Size, By Metabolic Disorder, 2019-2030
7.1.5. India Active Pharmaceutical Ingredients Market Size, By Oncology, 2019-2030
7.1.6. India Active Pharmaceutical Ingredients Market Size, By Others, 2019-2030
7.2. India Active Pharmaceutical Ingredients Market, By Synthesis Type
7.2.1. India Active Pharmaceutical Ingredients Market Size, By Synthetic API, 2019-2030
7.2.2. India Active Pharmaceutical Ingredients Market Size, By Biotech API, 2019-2030
7.3. India Active Pharmaceutical Ingredients Market, By Type of Manufacture
7.3.1. India Active Pharmaceutical Ingredients Market Size, By Captive, 2019-2030
7.3.2. India Active Pharmaceutical Ingredients Market Size, By Merchant, 2019-2030
7.4. India Active Pharmaceutical Ingredients Market, By Region
7.4.1. India Active Pharmaceutical Ingredients Market Size, By North, 2019-2030
7.4.2. India Active Pharmaceutical Ingredients Market Size, By East, 2019-2030
7.4.3. India Active Pharmaceutical Ingredients Market Size, By West, 2019-2030
7.4.4. India Active Pharmaceutical Ingredients Market Size, By South, 2019-2030
8. India Active Pharmaceutical Ingredients Market Opportunity Assessment
8.1. By Application, 2025 to 2030
8.2. By Synthesis Type, 2025 to 2030
8.3. By Type of Manufacture, 2025 to 2030
8.4. By Region, 2025 to 2030
9. Competitive Landscape
9.1. Porter's Five Forces
9.2. Company Profile
9.2.1. Company 1
9.2.1.1. Company Snapshot
9.2.1.2. Company Overview
9.2.1.3. Financial Highlights
9.2.1.4. Geographic Insights
9.2.1.5. Business Segment & Performance
9.2.1.6. Product Portfolio
9.2.1.7. Key Executives
9.2.1.8. Strategic Moves & Developments
9.2.2. Company 2
9.2.3. Company 3
9.2.4. Company 4
9.2.5. Company 5
9.2.6. Company 6
9.2.7. Company 7
9.2.8. Company 8
10. Strategic Recommendations
11. Disclaimer
Table 1: Influencing Factors for Active Pharmaceutical Ingredients Market, 2024
Table 2: India Active Pharmaceutical Ingredients Market Size and Forecast, By Application (2019 to 2030F) (In USD Million)
Table 3: India Active Pharmaceutical Ingredients Market Size and Forecast, By Synthesis Type (2019 to 2030F) (In USD Million)
Table 4: India Active Pharmaceutical Ingredients Market Size and Forecast, By Type of Manufacture (2019 to 2030F) (In USD Million)
Table 5: India Active Pharmaceutical Ingredients Market Size and Forecast, By Region (2019 to 2030F) (In USD Million)
Table 6: India Active Pharmaceutical Ingredients Market Size of Anti-infective (2019 to 2030) in USD Million
Table 7: India Active Pharmaceutical Ingredients Market Size of Cardiovascular (2019 to 2030) in USD Million
Table 8: India Active Pharmaceutical Ingredients Market Size of Neurological (2019 to 2030) in USD Million
Table 9: India Active Pharmaceutical Ingredients Market Size of Metabolic Disorder (2019 to 2030) in USD Million
Table 10: India Active Pharmaceutical Ingredients Market Size of Oncology (2019 to 2030) in USD Million
Table 11: India Active Pharmaceutical Ingredients Market Size of Others (2019 to 2030) in USD Million
Table 12: India Active Pharmaceutical Ingredients Market Size of Synthetic API (2019 to 2030) in USD Million
Table 13: India Active Pharmaceutical Ingredients Market Size of Biotech API (2019 to 2030) in USD Million
Table 14: India Active Pharmaceutical Ingredients Market Size of Captive (2019 to 2030) in USD Million
Table 15: India Active Pharmaceutical Ingredients Market Size of Merchant (2019 to 2030) in USD Million
Table 16: India Active Pharmaceutical Ingredients Market Size of North (2019 to 2030) in USD Million
Table 17: India Active Pharmaceutical Ingredients Market Size of East (2019 to 2030) in USD Million
Table 18: India Active Pharmaceutical Ingredients Market Size of West (2019 to 2030) in USD Million
Table 19: India Active Pharmaceutical Ingredients Market Size of South (2019 to 2030) in USD Million
Figure 1: India Active Pharmaceutical Ingredients Market Size By Value (2019, 2024 & 2030F) (in USD Million)
Figure 2: Market Attractiveness Index, By Application
Figure 3: Market Attractiveness Index, By Synthesis Type
Figure 4: Market Attractiveness Index, By Type of Manufacture
Figure 5: Market Attractiveness Index, By Region
Figure 6: Porter's Five Forces of India Active Pharmaceutical Ingredients Market
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