The Indian pharmaceutical industry has a significant impact on the world. From supplying low-cost medicines to the most effective generic drugs, the Indian Pharma industry thrives as the third largest industry based on volume. Generic medicines and India’s emergence as a leading API manufacturer are major contributors to this growth.
We will discuss how India became the pharmacy of the world, its growth as a reliable generic drug partner, and its emergence as a top API sourcing country.
The growth of the Indian pharma industry
Until the 1970s, the Indian pharma market was dominated by foreign players (source); however, now India is known as the ‘Pharmacy of World’ due to its robust manufacturing and exporting capacity. We have become one of the largest suppliers of generic medicines and now supply 55-60% of UNICEF’s vaccines (source).
The Indian pharma sector is valued at USD 50 billion in FY 2023-24, becoming the third largest industry by volume and 14th largest by value (source). The infrastructure, supply chain, and resources contribute to the sector’s growth. Recently, President Trump exempted Indian Pharmaceutical products from any tariffs, signaling the crucial role of Indian pharmaceutical products in the US markets.
The following are a few reasons why the Indian Pharma Industry is thriving.
- A booming number of domestic pharmaceutical manufacturing hubs in India
- The government-backed advanced R&D facilities
- The consistent effort to improve and meet international standards, such as those of the US FDA and WHO-GMP
- The Pharma sector is funded through government schemes like the Production Linked Incentive (PLI) Scheme and the Bulk Drug Parks scheme, and FDI through the automatic routes.
Rise of India as a generic drug partner
The Patents Act 1970 and the 1979 Drug Price Control Order played a significant role in boosting the domestic pharma companies and led to the departure of the foreign companies. This laid the grounds for the growth of generic medicine manufacturers in India. Post Globalization, the domestic generic medicine producers entered the global market.
India is one of the largest suppliers of generic medicines globally, with a 20% global market share. Furthermore, India has become a trusted generic pharmaceutical company, supplying 40% and 25% of the total generic drugs in the US and UK, respectively (source). The following are a few things that contribute to this growth as a global generic medicine supplier.
High-quality production capacity
Global pharma companies are diversifying their manufacturing and supply chains to reduce reliance on only one source. India has become one of the trusted locations due to its infrastructure, compliance with regulatory standards, and skilled talent pool.
As per a report, the Indian Contract Development and Manufacturing Organization (CDMO) market is set to capture 4-5% of the global market. The report suggests that the CDMO market can grow up to USD 14 billion by 2028 (source). Establishing innovative research centers with high-quality production units meeting international standards help India create quality generic medicine for global supply.
Regulatory compliance
The Indian pharma companies have focused on improving their production centers to obtain regulatory approval from global authorities. India has the most significant number of US FDA-approved facilities. Furthermore, more than 2000 facilities follow the WHO-GMP standards. These regulatory compliances allow us to export medicines to 150+ countries globally (source).
Robust supply chain through ports
India has become a preferred location for near-shoring due to its beneficial policies and advanced pharma infrastructure. The Quad and Indo-Pacific Economic Framework (IPEF) Supply Chain Agreement strengthen reliability and supports export of generic medicines.India as the emerging market for APIs
India’s ‘Make in India’ initiative focused on boosting the pharma industry, especially by creating active pharmaceutical ingredients (APIs). These efforts aim to reduce the reliance on a single country on sourcing API used in development of generic medicines.
India is the third-largest API manufacturer, holding 8% of the global market with WHO-qualified APIs (source). India is expected to double its API market and become a global sourcing hub. The following are a few factors contributing to the growth of the Indian API market:
- Government initiatives like Make In India, Atmanirbhar Bharat, and Bulk Drug Parks
- Advanced production facilities following global regulatory compliance
- Competitive pricing in the global market
- The growth of CDMO and CRO facilities
- Sustainability-focused manufacturing units
- Robust supply chain for global supply
Chemox Pharma: The Best API Manufacturers in India!
When looking for a reliable API sourcing partner in India, Chemox Pharma comes out as one of the best API manufacturers in India. The Chemox Pharma facility, based in Dahej, Gujarat, has state-of-the-art equipment that produce high-quality APIs and Intermediates.
The following are a few reasons why we have been trusted as an API partner globally:
- State-of-art manufacturing and testing facility to create high-quality pharma products
- We adhere to the WHO-GMP standards
- We can develop APIs and Intermediates products following diverse pharmacopoeia standards
- Timely and secure delivery of all types of our pharma products
- We offer customized packaging solutions developed at our R&D facilities
Conclusion
The pharmaceutical manufacturing hub in India is the pillar of its growing image as the ‘pharmacy of the world.’ India holds a 20% and 8% global market of generic drugs and APIs. The advanced infrastructure, government policies, skilled talent pool, regulatory compliance, and robust supply chain make us one of the largest producers and suppliers of pharma products, especially generic drugs and APIs. Chemox Pharma is one of the best API manufacturers in India, supplying high-quality APIs and Intermediates globally. We can help you create an API and Intermediates based on your specific requirements and packaging needs. Contact us for queries and quotes.
FAQ
What’s India’s position in the global generic drug market?
India is one of the largest suppliers of generic medicines. The global demand for Indian generic medicine is due to their affordability, quality, and therapeutic effects. India holds 20% of the global generic drug market. In recent years, India has become a reliable source of APIs. India is the third-largest supplier of advanced APIs.
Can you create APIs as per the USP standards?
Absolutely! Chemox Pharma follows the WHO-GMP standards for all our pharma products. We can create your desired APIs and Intermediates in US Pharmacopoeia standards. Furthermore, we can also follow other Pharmacopoeia standards such as EP, IP, IH, and BP. Contact us for more information.
What is the future of API in India?
India has a bright future as a reliable API manufacturer. Government initiatives like the PLI scheme, bulk drug park, Make In India, and Atmanirbhar Bharat boost R&D and manufacturing APIs. The regulatory compliance and robust supply chain make India a popular API sourcing partner. Chemox Pharma is a reliable API manufacturer with a global presence and follows WHO-GMP standards. Send us your product queries, and our team will contact you soon.
