The Indian Active Pharmaceutical Ingredients (API) market in 2025 was valued at US$14.2 billion and is expected to grow at a CAGR of 8.5% to reach US$21.46 billion by 2030. In contrast, the global market is expected to grow at a CAGR of 6.6% to reach US$198.4 billion by 2030.

Briefly about APIs: they are the core components responsible for the therapeutic effect of medicines. APIs form the base for drug formulation and determine its strength, dosage, and effectiveness.

The demand for APIs is growing every year, driven by rising chronic diseases, ageing populations, and the proliferation of generic drugs. Moreover, countries such as the USA and those in Europe rely on imports to meet 60–80% of their API requirements. India is set to capitalise on this growth through its lower labour costs

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