Details of the pharmaceutical API manufacturing market in India


The pharmaceutical API manufacturing market is a rapidly growing and highly competitive industry globally. API stands for active pharmaceutical ingredient. An API is a key ingredient in all pharmaceutical products and is responsible for the desired therapeutic effect of the drug. APIs are sourced from either natural or synthetic sources and are produced either in-house or by contracted manufacturers. The API pharma companies in India have been growing rapidly over the past few years. With the increasing demand for quality pharmaceutical products, the demand for active pharmaceutical ingredients has also increased significantly. India has become a major hub for the production of active pharmaceutical ingredients, as the country has a large pool of talented and experienced scientists and chemists.

The estimated growth of API in India

The pharmaceutical API manufacturing industry in India is estimated to be worth of USD 2 billion and is anticipated to grow in a CAGR of around 9% in the coming years. The market growth is driven by an increase in the prevalence of chronic diseases, rising demand for generic drugs, and technological advancements in the manufacturing process. Moreover, the government has also implemented several policies to promote the growth of the pharmaceutical API manufacturing industry in the country.

API manufacturing is a complex and highly regulated process that involves the synthesis or extraction of chemical compounds that form the active ingredient in a drug. The API is then used in the production of finished pharmaceutical products such as tablets, capsules, and injectable. India has a long history of manufacturing APIs, with many companies established in the 1970s and 1980s.

Another key factor driving the growth of the API manufacturing market in India is the favorable regulatory environment. The Central Drugs Standard Control Organization (CDSCO) is the regulatory authority in India responsible for regulating the manufacture, distribution, and sale of drugs. The CDSCO has implemented regulations that are aligned with international standards, making it easier for Indian manufacturers to export their products to international markets. In addition, the Indian government has introduced several measures to encourage investment in the pharmaceutical sector, such as tax incentives and grants for research and development.

In recent years, the Indian API manufacturing market has faced several challenges, including increased competition from other countries such as China and the United States, as well as changing regulatory requirements. The Indian government has implemented several initiatives to address these challenges, such as the ‘Pharma Vision 2020’ plan, which aims to make India a global leader in the pharmaceutical sector.

The industry has since grown significantly, with a large number of companies producing APIs for both domestic and international markets. These policies include tax incentives, subsidies, and other support for research and development activities.

How APIs are produced?

Depending on the drug, APIs can be produced in either a bulk or a specialty form. Bulk APIs are typically produced in large volumes and are used in generic drugs. They are typically manufactured through chemical synthesis, fermentation, or extraction from natural sources. Bulk APIs are usually less expensive and can be used in a wide range of products. Specialty APIs, in comparison, are usually produced in smaller batches and are used in branded drugs. They are usually produced through chemical synthesis and require a high degree of technical expertise. Specialty APIs are typically more expensive and are only used in a select range of products.


Overall, the pharmaceutical API manufacturing market in India is expected to have significant growth in the upcoming years. This growth is anticipated to be led by increasing demand for quality pharmaceutical products, increasing investments in research and development activities, and favorable government policies. The WBCIL is one of the fine chemical manufacturers India that have established large-scale manufacturing facilities across the country, which have enabled them to meet the rising demand for active pharmaceutical ingredients and develop new and improved products.

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