NEW DELHI: India’s active pharmaceutical ingredient (API) market, currently valued at about $15–16 billion, is projected to grow at a compound annual growth rate of 5–7 per cent in FY27 and FY28, a report said on Monday.
The report from CareEdge Ratings said the growth will be driven by favourable government policies, a structural shift toward high‑potency and complex APIs, rising domestic demand and deeper penetration into regulated and emerging markets.
Indian pharma firms are shifting from basic APIs to complex APIs to counter price erosion, strengthen margins and retain customers, the report said.
The report flagged persistent import reliance on China for key starting materials but cited optimism that government initiatives and Production‑Linked Incentive‑backed bulk drug parks begin to show progress.