India Active Pharmaceutical Ingredients Market Will Grow At Highest Pace Owing To Increasing Generic
Author : CMI Blogging | Published On : 13 Mar 2024
APIs help provide therapeutic effects to patients. The India API industry has grown in prominence due to low-cost manufacturing capabilities, making it an important exporter. Generic drugs require 70-80% less investment compared to developing a new medicine, driving producers to India for APIs. India accounts for over 30% of global generic medical exports, creating demand for high-quality APIs.
The India Active Pharmaceutical Ingredients Market Size is estimated to be valued at US$ 27014.17 Bn in 2024 and is expected to exhibit a CAGR of 21.% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the India active pharmaceutical ingredients are AVL, Cummins, Inc, Johnson Matthey Battery Systems, L&T Technology Services, Merlin Equipment Ltd., Navitas System, LLC, Nuvation Engineering, The Ventec Company, Toshiba Corporation, TWS (Technology with Spirit), Vecture Inc. Growing demand for generic drugs from low and middle-income nations is fueling API production. India supplies over 20% of global exports of generics globally, generating nearly $20 billion annually. Technological advancement in continuous manufacturing using 3D printing and machine learning for process optimization is enhancing productivity and quality of APIs.
Market Trends
In-house API manufacturing is increasing among drug makers to secure supply chains. Companies are investing to reduce dependence on China and developing nations for critical inputs. Sustainable 'green' chemistries focusing on low environmental impact are gaining focus to meet regulatory standards. Waterless techniques for API synthesis and single-use bioprocessing are emerging trends.
Market Opportunities
Growing geriatric population suffering from chronic diseases will boost API demand for affordable drugs. India can leverage China Plus One strategy of global pharmaceutical firms moving out of China. Focusing on specialized complex generics and Active Pharma Ingredient Intermediates present opportunities. Adopting continuous manufacturing and advanced analytics allows cost leadership and consistent high yields.
Impact of COVID-19 on India Active Pharmaceutical Ingredients Market
The COVID-19 pandemic has significantly impacted the growth of India active pharmaceutical ingredients market. During the initial months of pandemic, with strict lockdowns imposed nationwide, the manufacturing and supply chain operations were disrupted. This led to shortage of APIs and other raw materials required for production of various drugs. However, with APIs being a critical part of pharmaceutical industry, the government designated APIs and drug manufacturing under essential commodities. This helped restart production with safety protocols and restricted workforce.
As the pandemic continued, the demand for several drugs such as paracetamol, azithromycin, hydroxychloroquine increased multifold for treatment of various COVID-19 symptoms. This spike in demand resulted in shortage of these drugs in initial months. API manufacturers ramped up production capacity to fulfil the surge in requirements from drug makers. Several new approvals and investment proposals were cleared on priority for expanding API manufacturing capacity.
With vaccination drives underway, the pandemic situation is gradually improving. However, post COVID, the domestic API market is expected to witness changes. Companies will focus on building resilient supply chains and local sourcing to avoid dependence on imports. Furthermore, India aims to become self-reliant in APIs to meet domestic demand and expand export opportunities. The government's Production Linked Incentive (PLI) schemes will boost local manufacturing capacities.
Northern India and Western India are the major regional markets for active pharmaceutical ingredients in terms of value. The concentration is due to presence of major pharmaceutical manufacturing clusters in these regions. Northern India especially national capital region of Delhi accounts for over 35% share due to proximity to regulatory bodies and availability of skilled workforce.
Southern India market which includes states of Telangana, Karnataka and Tamil Nadu, is the fastest growing regional market for APIs in India. This is attributed to supportive government policies promoting pharmaceutical sector, availability of technical talents and emerging pharmaceutical companies focusing on API manufacturing. Major ports in Southern region also provide easy export opportunities contributing to regional growth.
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