by The global India Active Pharmaceutical Ingredients Market is estimated to be valued at US$ 23,449.8 Mn in 2023 and is expected to exhibit a CAGR of 8.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Active pharmaceutical ingredients (API) are key components found in pharmaceutical drug products. API impart medicinal properties in the final formulation. Pharmaceutical APIs are manufactured through complex chemical synthesis and isolation of active components from organic matter. Growing prevalence of chronic diseases and increasing demand for generic drugs are major factors driving growth of the India API market. India being the largest provider of generic drugs globally accounts for approximately 20% of global exports of generic medications.
Market key trends:
India has a large pool of highly skilled yet low-cost workforce enabling API manufacturers to gain economies of scale. Stringent regulations on drug safety have led to major API manufacturers shifting their facilities from China and other countries to India. Additionally, the Government of India’s ‘Pharma Vision 2020’ initiative aims to make India a global leader in drug manufacturing and increase pharmaceutical exports. This favorable regulatory environment coupled with growing contract manufacturing opportunities is expected to drive significant growth of the India API market over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate in India Active Pharmaceutical Ingredients Market due to stringent regulations for new industry players and requirement for high initial investments.
Bargaining power of buyers: The bargaining power of buyers is high due to presence of many local and international pharmaceutical companies in the market leading to higher competition among manufacturers.
Bargaining power of suppliers: The bargaining power of suppliers is low in this market as there are many raw material suppliers for APIs.
Threat of new substitutes: The threat of new substitutes is low in this market as Active Pharmaceutical Ingredients do not have close substitutes.
Competitive rivalry: is high in this market.
Key Takeaways
The global India Active Pharmaceutical Ingredients Market Share is expected to witness high growth, exhibiting CAGR of 8.3% over the forecast period, due to increasing generic drug consumption and patent expiration of blockbuster drugs.
Regionally, the western region of India dominates the India Active Pharmaceutical Ingredients Market owing to presence of major pharmaceutical companies. The southern region is also expected to grow at a high rate during the forecast period.
Key players operating in the India Active Pharmaceutical Ingredients Market are Teva Pharmaceutical Industries Ltd., Solara, Aurobindo Pharma Limited, Dr. Reddy’s Laboratories, Lupin Limited, Sun Pharmaceutical Industries Limited, Divis 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. Key players are focusing on capacity expansion, backward integration, and new product development to strengthen their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
