India Aims to Reduce Dependence on China for Pharma Market

---

Researched by Industrial Info Resources (Sugar Land, Texas)--India's Pharmaceutical & Biotech Industry, which supplies nearly half of the world's vaccines, is the third-largest producer by volume and 14th largest by value globally. It is projected to reach US$130 billion in value by 2030. However, it depends heavily on Chinese imports for active pharmaceutical ingredients (APIs) and other basic chemicals. The API is the part of the drug responsible for producing the intended medicinal effect.

India is introducing a variety of and policies to curtail imports and encourage expansion, including the production-linked incentive (PLI) scheme, which was introduced in 2021 to promote domestic manufacturing of APIs, bulk drugs and medical devices. India also has slated "in-principle" approvals for three bulk drug parks in Gujarat, Himachal Pradesh and Andhra Pradesh.

Despite the government's efforts, the impact of these initiatives remains low. Due to their relatively low cost, imports from China continue to remain high (as much as 75% in the 2023 fiscal year), with India's dependence on Beijing for key starting materials (KSM) exceeding 50%. Considering the limited outcomes, India is trying to rectify and strengthen the existing PLI policy to attract further investments. A new PLI scheme for APIs, KSMs and other starting materials also is anticipated.

Industrial Info is tracking more than 780 plants in India that are geared toward manufacturing APIs and intermediates. Industrial Info also is tracking more than 400 active capital-spending projects in India, totaling more than US$4.4 billion of investment value.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Pharmaceutical & Biotech Project and Plant databases can click here for a list of detailed plant profiles and click here for a list of related plant profiles.

Andhra Pradesh is the biggest driver of investment, accounting about 24% of the market share and leading the way with an investment value of more than US$1 billion. It is followed by Gujarat with US$893 million across 91 projects, and Telangana with US$830 million across 96 projects. Other countries with substantial investments include Karnataka, Maharashtra, Himachal Pradesh, Madhya Pradesh and Punjab.

With a combined project spending of more than US$1 billion, Aurobindo Pharma Limited (Hyderabad), Hetero Group of Companies (Hyderabad), Ipca Laboratories Limited (Mumbai) and Glenmark Pharmaceuticals Limited (Mumbai) are the top players in the Indian API market, with a cumulative market share of about 25%.

About 48% of the investment is geared toward grassroot plants, whereas 46% is geared toward plant expansions. About 38% of the investment is under construction, while 37% is in the engineering phase and 27% is in the planning stages. Most of these projects are anticipated to be completed by December 2025, while the rest are anticipated to be completed by December 2028.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).