New Delhi, March 3 || India’s Active Pharmaceutical Ingredients (APIs) market is expected to expand to $22 billion by 2030, according to a report on Monday.
The report by Praxis Global Alliance, a management consulting firm, stated that the APIs are growing at a CAGR of 8.3 pc in the country.
APIs are biologically active components in drugs that provide pharmacological activity or direct effects in disease treatment. For instance, in common medications like Crocin, paracetamol functions as the API, directly responsible for the drug's pain-relieving properties.
The report noted that “India is also the third-largest global producer of APIs, with an 8 per cent market share and over 500 different APIs manufactured”.
“India contributes 57 per cent of the APIs on the WHO's prequalified list. The market is expected to expand from $18 billion in 2024 to $22 billion by 2030, growing at a CAGR of 8.3 per cent,” said Madhur Singhal, Managing Partner, Pharma and Lifesciences at Praxis Global Alliance.
APIs represent a significant part of India's pharmaceutical market, contributing approximately 35 per cent of the sector's value.
“These crucial components account for 40 per cent of overall drug manufacturing costs on average, though this figure can rise to 70-80 per cent depending on market conditions,” Singhal said.
The expert said that although the Indian API sector is growing it faces challenges in the storage and transportation of thermolabile drugs, cold chain-dependent pharmaceuticals, and compliance with new barcoding systems.