Indians have been known for finding innovative solutions in difficult times (aapda mein avsar). When the Indian pharma industry faced shortages due to supply chain disruption during the pandemic, we realized that we had to rely on other countries for one of our necessities. Following this incident, the Indian government and pharma companies focused on creating APIs and have become the third-largest API producer, supplying 8% of the global APIs. So, how did India become one of the top API suppliers in the world? Let’s discuss that in this blog.
The Rise of API Suppliers in India
While India is known as the ‘Pharmacy of the World‘ for its high-quality generic medicines, it imports essential APIs to develop those medicines. Therefore, when the pandemic happened, it came with a reality check about our reliance on China. Since then, pharma companies and the government have focused on improving the pharmaceutical manufacturing in India, including APIs.
The commitment of the advanced pharma developers and compliance with international regulations have helped India become a reliable API supplier. As a result, the Indian API market in 2024 had an estimated value of 16.86 USD billion and is expected to reach 38.13 USD billion by 2034 (Source).
Why are Global Pharma Companies Choosing Indian API Suppliers?
The following are the few factors that attract global pharma companies to source their Active Pharmaceutical Ingredients from the API suppliers in India.
Diversifying the Pharma Product Sources
India was not the only country that faced a medicine shortage during the pandemic. Many countries realized that they couldn’t rely on just one country for their medicines and APIs. Therefore, they all started looking for new API suppliers. Indian API manufacturers used this opportunity to grow and attract the global pharma companies with high-quality APIs at competitive prices.
The Government Initiatives
The Government of India played a vital role in this shift. Make in India and Atmanirbhar Bharat helped the Indian pharma manufacturing companies develop and get international regulatory certificates to promote the exports and reduce the imports of APIs and other pharma products. Furthermore, they offered ₹6,940 crore under the PLI scheme for FY 2020-21 to FY 2029-30 to promote the production of KSMs, Intermediates, and APIs (source). These funds have helped India create 38 critical APIs that were previously imported.
Offering Competitive Pricing
One of the major factors that helps us compete with the world’s major API suppliers is our competitive pricing. India has access to affordable resources essential for API production. Additionally, government incentives help reduce the overall cost of production. The diversified logistics options also contribute to offering competitive API pricing in the global market. Additionally, lower labour and operational costs significantly reduce the price of the APIs, making India a preferred API supplier.
Availability of the Talent Pool
India is home to many skilled pharmacy graduates, chemical scientists, engineers, and regulatory experts who keep the pharma industry running. All these individuals have the necessary qualifications and experience to help India create APIs for export and reduce the production cost of generic medicine, making them more affordable. Access to a skilled pharma workforce creates a reliable and smooth functioning production system for obtaining regulatory approvals.
Transparent Communication & Pricing
Indian API manufacturers are known for their commitment to quality and transparent communication. API suppliers, like Chemox Pharma, offer transparent pricing to ensure that exporters understand what they are paying for. Additionally, most Indian API manufacturers maintain consistent and transparent communication regarding the order, shipment, and pricing.
Resilient Supply Chain
India is one of the most strategic locations for API sourcing due to its diverse logistic options, such as airways, water, and roads. The API suppliers in India have created a robust distribution network to reduce the procurement time. Additionally, many API manufacturers like Chemox Pharma help you customize the packaging details to meet your requirements.
Chemox Pharma: The Best API Suppliers in India!
Chemox Pharma is one of the best API companies in India, known for its WHO-GMP-approved manufacturing and R&D facility. Chemox Pharma is based in Dahej, Gujarat, exporting its APIs and Intermediates to 20+ countries. Over the years, we have created 18 APIs and regularly file DMFs.
We adhere to the WHO-GMP standards to create the best quality APIs and Intermediates. Additionally, we can customize the quality of the desired API and intermediate to various pharmacopoeial standards based on your needs. Contact us for consultation and queries, and our team will assist you!
Conclusion
India is the third-largest producer of API and one of the most reliable API suppliers globally. After the pandemic, many pharma companies want to diversify their source of APIs, and the API manufacturers in India are winning out due to their quality compliance, competitive pricing, and robust supply chain. The government initiatives and availability of a skilled pharma workforce help Indian API manufacturers thrive. Chemox Pharma is one of such trusted API manufacturers offering high-quality custom APIs manufactured in our WHO-GMP-approved facilities.
FAQ
Why Is There a Rise in Demand for API Suppliers in India?
API is the core compound of any medicine. Until recent years, India imported most of its APIs. However, the disruption of the supply chain in the pandemic was a reminder of the risks of such reliance. Therefore, the government of India and the pharma companies shifted their focus to creating APIs in-house. The affordable and high-quality APIs have become globally popular, leading to an increasing demand for API suppliers in India.
Do API Manufacturers in India Comply with Global Regulatory Requirements?
Yes! Indian API manufacturers comply with international production standards such as WHO-GMP, US FDA, EDQM, and more. Chemox Pharma follows the WHO-GMP standards to create internationally approved APIs and Intermediates. You can customize the quality of the API to meet the desired pharmacopoeial standards.
What Should You Look for When Choosing an API Manufacturer in India?
When choosing an API manufacturer and supplier, focus on their expertise, regulatory compliance, range of APIs, supply chain options, client testimony, and transparency in price.
What Is India’s Rank in the API Market?
India is the third-largest API producer and meets 8% Global demand for best APIs. The regulatory compliance and competitive prices make India one of the trusted API suppliers. Chemox Pharma is a trusted API manufacturer that has created 18 APIs following the WHO-GMP standards.
