Survey Highlights Indian API Sector's Strategic Role

According to a new survey of active pharmaceutical ingredient (API) manufacturing in India, the sector could play a critical role in the development of higher-tech applications. US consultancy Frost & Sullivan estimates that India produces bulk drugs worth roughly US$1.5bn per year, with almost 70% of this total exported.

Improving technology and stricter intellectual property legislation are encouraging Indian firms that manufacture for multinationals to build production alliances. According to the report, API development and specialist manufacturing comprise roughly 25% of all pharmaceuticals outsourcing.

Notably, the survey argues that technical capacity, not cost considerations, is driving growth in the API manufacturing sector. Chemical synthesis accounts for 55% of India's outsourcing business. Biosynthesis, fermentation, bio-oxidation and chemical catalysts are the key growth activities in this segment. Indian API producers also have the expertise in R&D and drug intermediates development to provide high-end custom manufacturing, the survey claims.