Active Pharmaceutical Ingredients Industry in India (2025 - 2030)

Market insights:

The market for Active Pharmaceutical Ingredients (API) in India includes the sourcing of raw materials and production, research and development, and supply of APIs to pharmaceutical companies globally.

In 2023, the active pharmaceutical ingredient (API) industry in India was valued at INR 1.07 trillion. It is expected to reach INR 1.82 trillion by 2030, expanding at a compound annual growth rate (CAGR) of ~8.26% during the 2025 - 2030 period. India is a leading supplier of generics, driving the demand for APIs both domestically and globally. India exports around 50% of its APIs to developed markets, including the US and Europe.

The shift toward self-reliance in pharmaceutical manufacturing and the push for compliance with quality standards, such as GMP certifications, are strengthening India’s position as a global leader in API production.

Market drivers:

As nations aim to lessen dependence on China for API sourcing, India's well-established manufacturing abilities make it a significant alternative supplier globally.

As global supply chains evolve, India has ramped up its API exports, especially to high-demand regions such as the US and Europe, supporting industry expansion.

Market trends:

With international markets enforcing stricter regulations, Indian API manufacturers are focusing on quality control and compliance with GMP (Good Manufacturing Practices) to sustain their competitive edge.

To address changing regulatory requirements, Indian firms are investing in improved infrastructure, advanced technologies, and a skilled workforce to maintain consistent product quality and compliance.