As sales have started to normalize following the pandemic in the previous year, Indian pharmaceutical companies are predicted to grow strongly soon. Market size is estimated to increase by about 11% over the following two years, from about US$ 45 billion in FY21. The pharmaceutical industry’s exports are expected to reach almost $65 billion by 2024, and by 2030, they are predicted to reach almost $120 billion.
Additionally, the country’s API market will undoubtedly grow shortly due to the presence of several medium-sized to large API producers and the government’s growing emphasis on the development of the pharmaceutical manufacturing sector.
Advantages of the Indian API Industry
The domestic API market for the Indian pharmaceutical industry is thriving, and many Api Pharma Companies In India have several advantages over their Western counterparts. When it comes to factors like technological prowess and process effectiveness, the nation is on an equal footing with Western countries. A competitive advantage is a developed chemical industry, a skilled workforce, and strict quality and manufacturing standards.
The Department of Pharmaceuticals launched a PLI scheme to promote domestic manufacturing by setting up greenfield plants with a minimum amount of domestic value-addition in four distinct “Target Segments” from FY21 to FY30. This was done to achieve self-reliance and reduce the country’s dependence on imports for its essential bulk drugs.
Additionally, in June 2021, Nirmala Sitharaman, the minister of finance, announced an additional outlay of Rs. 197,000 crores to be used over five years for the pharmaceutical PLI scheme in 13 crucial sectors, including active pharmaceutical ingredients, drug intermediaries, and important starting materials.
Impact of Covid
The Api Pharmaceutical Companies In India have recently become reliant on China for imports of advanced API intermediates and APIs due to the competitive pricing provided by Chinese suppliers. Due to India’s excessive reliance on China for raw material imports during the pandemic, supply chains were disrupted, leading to shortages and the unavailability of medications. As a result, API prices became more volatile, and quality constraints were established, driving up formulation costs and eroding profit margins. It also increased procurement costs.
The Indian government has responded by allocating $1.2 billion to the Pharmaceutical Api Manufacturers In India and announcing the development of a production-linked incentive program for the manufacture of essential medications and APIs to reduce the nation’s reliance on imports from China. 53 APIs are currently being produced in the nation as part of its “China-plus-one” policy to close supply gaps.
Future Outlook for the Indian API Market
India is in a good position to serve as a different source of supply for Top Chemical Manufacturing Companies In India that only use China. Global buyers have good reason to compare India to China due to its relatively better regulatory compliance history, far superior EHS compliance in the majority of key API manufacturing regions, and superior technical skills of the Indian pharmaceutical workforce.