India stands among the world’s most significant producers of Active Pharmaceutical Ingredients (API’s), the biologically active components that give medicines their therapeutic effect. As of 2026, India hosts about 500 active pharmaceutical ingredient producers, many of whose products are approved by the U.S. FDA and other global regulatory agencies.
The scale of this capability is substantial. The India API market is projected to reach $32 billion by 2035, growing at a compound annual rate of 8.1%. This growth rests on well-known advantages: cost-competitive manufacturing, a large skilled workforce, regulatory compliance and recently, more free trade deals across the developed world.
As a small example, India exports huge volumes of APIs for metformin, atorvastatin and rosuvastatin.
In recent years the Indian government introduced a Production-Linked Incentive (PLI) scheme or plan. As of March 2025, the scheme has spurred domestic production of 38 new critical APIs. As global buyers seek to diversify away from single-country sourcing, India’s established infrastructure positions it as an increasingly vital pillar of the world’s pharmaceutical ingredient supply chain.
Similarly, India’s chemical manufacturing prowess has enabled the country to export substantial quantities of excipients.