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Why is India the Future of Global Production of APIs?

Why is India the Future of Global Production of APIs?

Following a recent visit to three Indian cities, Frederic Kahn, head of  Active Pharmaceutical Ingredients (API’s)  at  Wavelength Pharmaceuticals by Seqens, posits six reasons why India is the future of global production of APIs.

Lightly edited summary of Kahn’s views:

1. India, a new intermediary in the pharmaceutical ecosystem

“India has increased production of N-1 and N-2 intermediary products as it utilizes more of the APIs it manufactures for domestic pharmaceutical production. The ecosystem should become more efficient globally due to the addition of a new intermediary.”

2. Changing Chinese priorities

“Priorities in China are changing from producing APIs to fields such as biotech, digitalization, continuous manufacturing, or anything else considered “pioneering.” However, it will cede several opportunities to India in the process.

3. Improving the global standard of quality

“In several aspects, especially regarding quality, India is not merely a better option than China; it is a trailblazer. The quality of the items themselves, the components that go into them, and the supply networks surrounding them are frequently on a par with or better than anything available in China, Europe, and the U.S.”

4. Utilizing extra capacity

“India’s pharmaceutical industry has grown tenfold in the last two decades, with the most considerable growth recorded within the last five years. It has increased the availability of APIs and raw materials on a substantial scale, reduced reliance on China, strengthened the global supply chain, and fostered the development of India’s indigenous pharmaceutical enterprises.”

5. An independent India

The spirit of aspiration and eagerness that pervades everything is what Kahn will remember most about his visit to India. “There is strong government support and comprehensive long-term strategies to get there.” He believes India will soon be recognized as a supplier to other countries and a global leader in quality, R&D, and total value.

6. International strategic realignment

“India will become a more important strategic partner for businesses in the U.S. and Europe as its economy grows.”  Kahn advises everyone to look closely at what is currently occurring in India for clues about the prospects of this future.

Last updated: December 26th, 2025

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