The Report Covers API Market Manufacturers in India and it is Segmented by Business Mode (Captive API and Merchant API), Synthesis Type (Synthetic and Biotech), Drug Type (Generic and Branded), and Application (Cardiology, Oncology, Pulmonology, Neurology, Orthopedic, Ophthalmology, and Other Applications). The report offers the value (in USD billion) for the above segments.

The india API market size reached USD 8,027.4 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 15,768.1 Million by 2033, exhibiting a growth rate (CAGR) of 7.79% during 2025-2033. The increasing proliferation of IoT devices, which has created a need for APIs to enable communication and data exchange between devices and platforms, is driving the market.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on type, functionality and purpose, and industry vertical.

In 2019, the active pharmaceutical ingredient (API) industry market size in India was valued at *** billion Indian rupees. The industry has seen steady growth since 2016. Based on forecasted values, the API market size was expected to increase by almost **** percent in the time period from 2020 to 2024.

Snapshot img

India Active Pharmaceutical Ingredient (API) Market Size 2025-2029

The India API market size is forecast to increase by USD 11.18 billion, at a CAGR of 7.4% between 2024 and 2029.

The market is experiencing significant growth, driven by an increasing number of type II drug master files (DMF) submitted to regulatory authorities. This trend reflects the paradigm shift towards contract manufacturing organizations (CMOs) and the outsourcing of API production to countries like India, where cost-effective manufacturing solutions are available. However, this shift is met with challenges, as the regulatory environment in India continues to be stringent. The Indian Pharmacopoeia (IP) and the United States Pharmacopoeia (USP) set high standards for API manufacturing, requiring adherence to rigorous quality control measures. These regulations necessitate substantial investments in infrastructure and technology, posing challenges for smaller players in the market.
Despite these obstacles, the potential for growth is substantial, as the demand for affordable APIs continues to rise, particularly in emerging markets. Companies seeking to capitalize on this opportunity must invest in state-of-the-art manufacturing facilities and adhere to stringent regulatory requirements to remain competitive. By doing so, they can effectively navigate the challenges and capitalize on the market's growth potential.

What will be the size of the India Active Pharmaceutical Ingredient (API) Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free Sample

The Indian API market is a significant segment of the global pharmaceutical industry, marked by robust API usage, manufacturing, and exports. API trends indicate a growing emphasis on quality and compliance, with stricter regulations and increased focus on security and stability. Pharmaceutical exports have surged, driven by tax incentives and investment opportunities, making India a preferred destination for API sourcing. Domestic API sales are buoyed by a large and growing pharmaceutical workforce, advanced infrastructure, and a streamlined supply chain. API licensing, innovation, and research are key drivers of growth, with companies investing in technology and development to meet evolving market demands.
API pricing remains competitive, with manufacturers adopting innovative synthesis methods to reduce costs and maintain profitability. The API industry continues to face challenges, including regulatory hurdles, supply chain disruptions, and increasing competition. Despite these challenges, the future looks bright for the Indian API market, with ample opportunities for growth and expansion.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Manufacturing Type

  Captive APIs
  Contract APIs


Type

  Innovative APIs
  Generic APIs


Product Type

  Prescription
  Over-the-counter (OTC)


Application

  Cardiovascular diseases (CVDs)
  Oncology
  Infectious diseases
  Diabetes
  Others


Geography

  APAC

    India

By Manufacturing Type Insights

The captive apis segment is estimated to witness significant growth during the forecast period.

The Indian Active Pharmaceutical Ingredient (API) market is witnessing significant growth due to the increasing demand for affordable healthcare services. The largest share of this market is held by captive APIs, which pharmaceutical companies produce in-house for their medication production. The focus on expanding healthcare accessibility has driven this segment's growth, as the demand for low-cost medicines increases. To cater to this demand, innovators are collaborating with Contract Manufacturing Organizations (CMOs) for outsourcing bulk actives or late-stage intermediates. Process automation and technology transfer play crucial roles in reducing production costs and improving efficiency in API manufacturing. Regulatory approvals and ethical considerations are essential factors influencing the market dynamics.

Pharmaceutical research and development, drug discovery, and clinical trials are ongoing processes that require a steady supply of high-quality APIs. The distribution network, intellectual property, and supply chain management are critical aspects of the API market. Pharmaceutical companies rely on a robust distribution network to ensure timely delivery of APIs to manufacturing sites. Intellectual property protection is essential to safeguard the investments made in research and development. The market for APIs also encompasses herbal medicines, pharmaceutical excipients, and pharmaceutical packaging. Pharmac

In financial year 2019, the active pharmaceutical ingredient (API) imports in India from China saw the highest share with 68 percent. Even though India is a top global exporter of drugs, the pharmaceutical industry, paradoxically, is also one of the largest importers of bulk drugs such as APIs.

Subscribers can find out export and import data of 23 countries by HS code or product’s name. This demo is helpful for market analysis.

The India Active Pharmaceutical Ingredient (API) Market stands at a valuation of $20.46 billion and is projected to exhibit a remarkable CAGR of 6.49%. This surge is attributed to several driving factors, including government initiatives, rising food security concerns, and technological advancements. Hybrid seeds offer benefits such as enhanced yield, disease resistance, and improved quality, making them a desirable choice for farmers. The market caters to applications in various agricultural sectors, and key players in the industry are actively involved in research and development to introduce innovative hybrid seed varieties. Key drivers for this market are: Increasing prevalence of chronic diseases Growing demand for generic drugs Government initiatives to promote domestic API production Technological advancements in drug discovery and development. Potential restraints include: Stringent regulatory requirements Competition from low-cost API producers in other countries Dependency on imports for certain critical APIs Environmental concerns related to API manufacturing Fluctuations in raw material prices. Notable trends are: The growing popularity of generic drugs has led to an increased demand for generic APIs, which are used in the production of these drugs. Technological advancements in drug discovery and development have accelerated the creation of new APIs, leading to a more diversified market. Stringent regulatory requirements and consumer demand for high-quality medicines have driven a focus on quality and compliance throughout the API manufacturing process..

In India, the cost of raw materials amounts to almost ********** of the total manufacturing costs for API products. As of **********, the cost of raw materials relative to manufacturing of API products amounted to ** percent. By contrast, the category consumables reflected the lowest share with ***** percent.

118 Global export shipment records of Pharma Api with prices, volume & current Buyer's suppliers relationships based on actual Global export trade database.

Subscribers can find out export and import data of 23 countries by HS code or product’s name. This demo is helpful for market analysis.

In financial year 2019, India saw the highest volume of imports for Vitamin B1 of over ***** thousand kilograms. By contrast, Vitamin B12 had a lower import volume of **** thousand kilograms in India in 2019. Even though India is a top global exporter of drugs, the pharmaceutical industry, paradoxically, is also one of the largest importers of bulk drugs such as APIs from other countries, in particular, from China.

The India Api is projected to be valued at {Market_Size_2024} in 2024, driven by factors such as increasing consumer awareness and the rising prevalence of industry-specific trends. The market is expected to grow at a CAGR of {CAGR}, reaching approximately {Market_Size_2034} by 2034.

The India API market offers a wide range of products, catering to various therapeutic areas. Some of the key product segments include APIs for cardiovascular diseases, oncology, respiratory diseases, and neurology.Cardiovascular APIs hold the largest market share, driven by the high prevalence of heart diseases in India. Oncology APIs are also witnessing significant growth due to the increasing incidence of cancer. Recent developments include: July 2022:Piramal Pharma Limited's Pharma Solutions division, a leading Contract Development and Manufacturing Organization (CDMO), has established a new active pharmaceutical ingredient (API) plant at its Aurora, Ontario, location., March 2022:India began local manufacturing of 35 active pharmaceutical components, for which the country was 90% reliant on imports from China under the production-linked incentives (PLI) system., October 2020:PAG, a large Asia-focused private equity firm, and its partners CX Partners and Samara Capital have agreed to acquire a controlling stake in Anjan Drug Pvt. Ltd., a Chennai-based manufacturer of active pharmaceutical ingredients (API).. Notable trends are: Rising Geriatric Population to Boost the Market Growth.

Subscribers can find out export and import data of 23 countries by HS code or product’s name. This demo is helpful for market analysis.

India saw the highest value of imports in active pharmaceutical ingredients (API) in financial year 2019 of approximately 250 billion Indian rupees in the mentioned time period. India's dependency on APIs from other countries has been growing at a relatively steady pace since financial year 2012. Even though India is a top global exporter of drugs, the pharmaceutical industry, paradoxically, is also one of the largest importers of bulk drugs such as APIs from other countries, in particular, from China.

20530 Global export shipment records of Api with prices, volume & current Buyer's suppliers relationships based on actual Global export trade database.

Subscribers can find out export and import data of 23 countries by HS code or product’s name. This demo is helpful for market analysis.

37 Global import shipment records of Pharma Api with prices, volume & current Buyer's suppliers relationships based on actual Global export trade database.

The India API report features an extensive regional analysis, identifying market penetration levels across major geographic areas. It highlights regional growth trends and opportunities, allowing businesses to tailor their market entry strategies and maximize growth in specific regions.

Discover insights on the India API Management Market, including trends, growth, and key players shaping the digital transformation landscape.