Indian API market to grow at 7% through FY28: CareEdge

The Indian Active Pharmaceutical Ingredient (API) market is poised for a robust growth trajectory, with projections indicating a 7% annual growth rate through the fiscal year 2028, according to a recent report by CareEdge. This expansion is fueled by the increasing demand for APIs, which are critical components in drug manufacturing. As India continues to bolster its pharmaceutical industry, the focus on self-reliance and reducing dependency on imports is becoming more pronounced. Currently, India imports 30-35% of its API requirements, with China accounting for a substantial 70% of these imports. China's dominance in the global API market is attributed to its large-scale production capabilities and cost efficiencies. However, recent supply chain disruptions and geopolitical tensions have highlighted the risks of over-reliance on a single source, prompting India to explore diversification strategies and enhance domestic production. To mitigate these risks, the Indian government has initiated several policy measures aimed at strengthening the local API industry. These include financial incentives for domestic manufacturers and the establishment of dedicated API parks. By fostering innovation and investment in this sector, India aims to not only meet its domestic needs but also emerge as a significant player in the global API landscape, enhancing its pharmaceutical export potential.

— Authored by Next24 Live