India Active Pharmaceutical Ingredients Market, by Product Type (Low Potent APIs and High Potent APIs), by Molecule Type (Acetaminophen, Naproxen, Dextromethorphan Hydrobromide, Gabapentin, Ciprofloxacin, Ofloxacin, Mirtazapine, Sotalol, Levetiracetam, Salmeterol, Salbutamol, Fexuprazan, Diclofenac, Azithromycin, Afatinib dimaleate, Apixaban, Bendamustine, Bosentan Monohydrate, Atorvastin Calcium, Atorvastin Calcium, Ibuprofen, Praziquantel, Oseltamivir - Process A, Lanthanum Carbonate Octa, Sevelamer Carbonate, Succinyl Choline Chloride, and Others), by Formulation (Oral, Topical, Injectables, and Drops), by Application (Diabetes, Oncology, Cardiovascular, CNS, Analgesics, Dermatology, Respiratory, Opthalmic, and Others), and by Region (North India, South India, East India, West India, and Central India), is estimated to be valued at US$ 19,993.2 Mn in 2021 and is expected to exhibit a CAGR of 8.3% during the forecast period (2021-2028), as highlighted in a new report published by Coherent Market Insights.
Increasing initiatives taken by the state governments to establish active pharmaceutical manufacturing plants is expected to boost the active pharmaceutical ingredient market growth during the forecast period. For instance, in June 2020, the Haryana government planned to set up bulk drug/API Park in Panipat, Haryana. The state government declared that they identified 900-acre land behind the Panipat refinery. The Haryana government also intends to form an Industry Advisory Council to initiate work on the proposed bulk drug park.
India Active Pharmaceutical Ingredient Market – Impact of Coronavirus (COVID-19) Pandemic
The coronavirus or COVID-19 outbreak that started from Wuhan, China has spread across India too, affecting various industries. Supply of key materials such as API has been severely disrupted due to quarantine, and lack of labor & raw materials, which has negative impact on the active pharmaceutical ingredients market. As the link between regional warehouses is not smooth, the transportation of raw materials between regions cannot be carried out successfully. This shortage of raw materials and components have affected the supply chain of the active pharmaceutical ingredients market.
India's pharmaceutical industry is heavily dependent on China. Approximately 70% of raw materials for APIs in India are imported from China. Moreover, supply-side constraints and contamination risks are expected to exacerbate shortages of certain types of medicines such as cardiovascular or heart disease drugs. The Ministry of Health and Family Welfare (MoHFW) predicts that in the event of a prolonged lockdown in China, more than 50 active ingredients of important antibiotics, vitamins, and hormones or steroids faced shortage in supply, which has negative impact on India active pharmaceutical ingredient market.
Browse 28 Market Data Tables and 34 Figures spread through 325 Pages and in-depth TOC on “India Active Pharmaceutical Ingredients Market”- Forecast to 2028, India Active Pharmaceutical Ingredients Market, by Product Type (Low Potent APIs and High Potent APIs), by Molecule Type (Acetaminophen, Naproxen, Dextromethorphan Hydrobromide, Gabapentin, Ciprofloxacin, Ofloxacin, Mirtazapine, Sotalol, Levetiracetam, Salmeterol, Salbutamol, Fexuprazan, Diclofenac, Azithromycin, Afatinib dimaleate, Apixaban, Bendamustine, Bosentan Monohydrate, Atorvastin Calcium, Atorvastin Calcium, Ibuprofen, Praziquantel, Oseltamivir - Process A, Lanthanum Carbonate Octa, Sevelamer Carbonate, Succinyl Choline Chloride, and Others), Formulation (Oral, Topical, Injectable, and Drops), Application (Diabetes, Oncology, Cardiovascular, CNS, Analgesic, Dermatology, Respiratory, Ophthalmic, and Others), and by Region (North India, South India, East India, West India, and Central India)
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High adoption of over-the-counter (OTC) drugs by large patient population coupled with growing healthcare and pharmaceutical industry and strong research & development in API are some of the major factors that are expected to drive the market growth during the forecast period. For instance, according to the India Brand Equity Foundation (IBEF) an Indian Government export promotion agency, investment in research and development by Indian pharmaceutical companies increased (in term of sales) from 5.3% to 8.5% during 2012 to 2018.
Key Takeaways of the India Active Pharmaceutical Ingredient Market:
- India active pharmaceutical ingredients market is expected to exhibit a CAGR of 8.3% during the forecast period, owing to the increasing production of generic drugs. For instance, in August 2021, according to the India Brand Equity Foundation (IBEF), India was the largest producer of generic medicines, which supplied 50% of vaccines and 40% of drugs to the U.S. and 25% of drugs to the U.K.
- Based on product type, low potent APIs segment is expected to account for largest market share in the India active pharmaceutical ingredients market in 2021 during the forecast period, owing to high demand for low potency APIs and increasing manufacturing capacities for low potency APIs. For instance, in May 2020, Granules India Ltd., a company based in Hyderabad, increased its capacity to manufacture paracetamol API by 1,800 tons per month and 22,000 tons per year. Sri Krishna Pharmaceuticals, Hyderabad, one of India's largest paracetamol producers, increased its installed capacity of producing paracetamol to 12,000 million tons per year.
- In terms of molecule type, others segment is estimated to constitute for a largest market share in the India active pharmaceutical ingredients market in 2021 during the forecast period, owing to rising focus of major market players operating in the India active pharmaceutical ingredients market, Solara Active Pharma, Neuland Laboratories, Divi’s Laboratories, Granules India, Aarti Drugs, and others are the major players operating in the India active pharmaceutical ingredients market with significant focus on research and development
- Among formulation, oral segment is expected to constitute for a large market share in the India active pharmaceutical ingredients market in 2021, owing to increasing pipeline drugs, which constitute oral ingredients and rising approval of new molecules with oral dosage forms. For instance, in June 2020, Glenmark Pharmaceuticals, an integrated and research-led global pharmaceutical company, announced the launch of antiviral drug Favipiravir (brand name FabiFlu) for the treatment of mild to moderate COVID-19 patients. Glenmark received manufacturing and marketing approval from Central Drugs Standard Control Organization (CDSCO), making FabiFlu the first oral Favipiravir-based medication in India for treating COVID-19.
- Based on application, cardiovascular segment is estimated to account for largest market share in the India active pharmaceutical ingredients market in 2021, owing to distribution agreements in order to retain their position in the market. For instance, in January 2018, AstraZeneca a pharmaceutical and biotechnology company announced a distribution agreement with Sun Pharmaceutical Industries, India to promote and distribute Axcer drug in India developed by AstraZeneca Pharma, India. Axcer is another brand name of Astra's drug ticagrelor, which is used to treat acute coronary syndrome (ACS).
- Among regions, West India is expected to account for largest market share in the India active pharmaceutical ingredients market in 2021, owing to market players are focusing on mergers and acquisitions. For instance, in May 2021, Hikal Ltd, a pharmaceutical company, signed a 10-year deal with a global pharmaceutical company for development and supply of a portfolio of niche Active Pharmaceutical Ingredients (APIs)
- Major players operating in the India active pharmaceutical ingredients market include Teva Pharmaceutical Industries Ltd., Salora, Aurobindo Pharma Limited, Dr. Reddy's Laboratories, Lupin Limited, Sun Pharmaceutical Industries Limited, Divi’s 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.
