by The India Active Pharmaceutical Ingredients (API) Market is estimated to be valued at US$ 19,993.2 million in 2021 and is expected to exhibit a CAGR of 8.3% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The India API Market refers to the production and distribution of active pharmaceutical ingredients in India. APIs are the biologically active components of pharmaceutical drugs, which are responsible for producing the desired therapeutic effect. India is one of the major players in the global API market, offering cost-effective manufacturing solutions and a wide range of high-quality generic drugs. The country has a strong presence in the global generic drug market and is known for its expertise in API manufacturing. The market is driven by the increasing demand for generic drugs, improvements in healthcare infrastructure, and the rise in government initiatives to promote the domestic pharmaceutical industry.
Market Dynamics:
The market dynamics of the India API market can be attributed to two key drivers. Firstly, the increasing demand for generic drugs is expected to drive the growth of the market. Generic drugs are cost-effective alternatives to brand-name drugs and are widely prescribed due to their identical therapeutic efficacy and lower cost. The growing prevalence of chronic diseases, such as cardiovascular diseases, diabetes, and cancer, is boosting the demand for generic drugs, thus fueling the growth of the API market in India. Secondly, rising investments in healthcare infrastructure are expected to propel market growth. The Indian government has been investing significantly in improving healthcare infrastructure, including hospitals, clinics, and healthcare facilities, to provide better access to healthcare services across the country. This, in turn, is expected to drive the demand for APIs for manufacturing drugs and medical formulations, thereby augmenting market growth.
Segment Analysis:
The India active pharmaceutical ingredients (API) market can be segmented based on type, manufacturing process, and therapeutic application. In terms of type, synthetic APIs dominate the market due to their wide range of applications and cost-effectiveness. Synthetic APIs are extensively used in the manufacturing of generic drugs, which are in high demand in the Indian pharmaceutical market. The increasing focus on research and development activities for new and innovative APIs is also contributing to the dominance of synthetic APIs in the market.
PEST Analysis:
Political: The Indian government has launched various initiatives to promote the pharmaceutical industry, such as the ‘Make in India’ campaign. This has attracted foreign investments and encouraged domestic companies to expand their API manufacturing capabilities.
Economic: The growing population, increasing healthcare expenditure, and rising awareness about healthcare are driving the demand for pharmaceutical products, including APIs, in India. The cost advantage offered by Indian manufacturers is also attracting international pharmaceutical companies to outsource their API production to India.
Social: There is a growing demand for affordable and accessible healthcare solutions in India. The increasing prevalence of chronic diseases and the need for cost-effective treatment options are driving the demand for generic drugs, which in turn is boosting the API market.
Technological: Technological advancements in API manufacturing processes, such as continuous manufacturing and process automation, are improving efficiency and reducing production costs. This is enabling manufacturers to offer APIs at competitive prices, thereby driving market growth.
Key Takeaways:
The India Active Pharmaceutical Ingredients (API) Market is expected to witness high growth, exhibiting a CAGR of 8.3% over the forecast period. This growth can be attributed to various factors, including the increasing prevalence of chronic diseases, rising healthcare expenditure, and the government’s initiatives to promote the pharmaceutical industry.
In terms of regional analysis, South India is the fastest-growing and dominating region in the API market. This can be attributed to the presence of a large number of pharmaceutical manufacturing units, favorable government policies, and the availability of skilled manpower in the region.
Key players operating in the India API market include Teva Pharmaceutical Industries Ltd., Solara, Aurobindo Pharma Limited, Dr. Reddy’s Laboratories, Lupin Limited, Sun Pharmaceutical Industries Limited, Divi’s Laboratories Ltd., Aarti Drugs Ltd., Hikal Ltd., Neuland Labs, Century Pharmaceuticals Ltd., Proventus Life Sciences Pvt Ltd, Chiral Drugs Pvt Ltd, USV Private Limited, and ASolution Pharmaceuticals Pvt. Ltd. These companies play a significant role in driving market growth through their extensive product portfolios and strategic initiatives.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
