Global API Market to Reach $328.94 Billion by 2030: What It Means for India's Pharma Industry

The global Active Pharmaceutical Ingredients (API) market is on an impressive growth trajectory, projected to reach USD 328.94 billion by 2030, according to a recent forecast by Mordor Intelligence. This rise, driven by the growing prevalence of chronic diseases, increased demand for generics, and technological advancements in drug manufacturing, presents major implications—especially for India, one of the world’s leading API producers.

In this blog, we’ll explore the key drivers of this market boom, how India is positioned in this evolving landscape, and how platforms like Pharmatradz.com are reshaping the way APIs are sourced and traded globally.

What Are APIs and Why is the Global Market Growing?

Active Pharmaceutical Ingredients (APIs) are the biologically active components used in drugs. Every medicine you consume, whether it's a common painkiller or a life-saving cancer treatment contains an API that produces the desired therapeutic effect.

Key Drivers Behind API Market Growth:

• Rising chronic and lifestyle-related diseases (e.g., diabetes, cardiovascular conditions, cancer)

• Growth of generic and biosimilar markets, especially in developing countries

• Increased drug research & innovation, particularly in oncology and personalized medicine

• Government healthcare reforms and pandemic-driven awareness

Mordor Intelligence highlights that the industry is expected to grow at a CAGR of 7.22% from 2023 to 2030 making it one of the fastest-growing segments in healthcare.

India’s Role in the Global API Ecosystem

India has earned the nickname “Pharmacy of the World”, thanks to its robust pharma manufacturing capabilities. It is the third-largest API producer by volume globally, contributing nearly 8% of global API output.

India's Strengths in API Manufacturing:

• Large pool of skilled chemists and researchers

• Low production costs and mature infrastructure

• Strong export network to over 200 countries

According to IBEF and Invest India, the Indian pharma market was valued at USD 50 billion in FY 2023-24, and is expected to hit USD 130 billion by 2030.

Government Policies Supporting API Growth in India

Recognizing the risks of over-dependence on Chinese imports for key raw materials, the Indian government has launched a series of policy initiatives to boost domestic API production.

Key Initiatives Include:

• PLI Scheme (Production Linked Incentive): With INR 6,940 crore allocated to promote domestic API and KSM production

• Bulk Drug Parks: Investment of INR 14,300 crore to create three mega manufacturing hubs

• Import substitution strategies to reduce reliance on Chinese supply chains

These moves aim to transform India from an API-dependent nation to a self-sufficient and export-oriented powerhouse.

Disease Trends Driving API Demand in India

India’s growing population, aging demographic, and increasing rates of non-communicable diseases have sharply increased domestic demand for APIs.

Top API Demand Segments:

• Cardiovascular drugs

• Antidiabetics

• Oncology medications

• Antibiotics and antivirals

By 2030, chronic illnesses are expected to make up over 67% of India's total disease burden, which further emphasizes the need for stable and cost-effective API supply chains.

Challenges India Must Overcome

Despite its strengths, the Indian API industry faces significant challenges:

• Environmental and regulatory compliance

• Fluctuating raw material prices

• Need for higher R&D investment

• Competition from lower-cost manufacturers in Southeast Asia

However, the opportunity to fill global supply chain gaps, especially amid geopolitical shifts and China+1 sourcing strategies, gives India a strong advantage if it continues to innovate and scale.

How Pharmatradz.com is Empowering API Buyers and Sellers

In the digital era, platforms like Pharmatradz.com are playing a pivotal role in transforming the pharmaceutical supply chain.

What is Pharmatradz?

Pharmatradz is a B2B pharmaceutical marketplace that connects API manufacturers, suppliers, and buyers worldwide. The platform offers a seamless interface for:

• Sourcing high-quality APIs at competitive prices

• Validating manufacturers’ compliance and credentials

• Reducing procurement timelines and improving supply chain transparency

By helping Indian API manufacturers reach global buyers efficiently, Pharmatradz enhances market access, reduces friction in transactions, and promotes export growth.

The Future of APIs: A New Era for India

With the global API market projected to cross USD 328 billion by 2030, and India’s continued focus on manufacturing excellence and policy support, the country is well-positioned to become a global API leader.

Strategic Steps for India’s API Growth:

• Investing in green chemistry and sustainable production

• Creating API innovation clusters

• Strengthening digital supply chains via platforms like Pharmatradz.com

• Encouraging public-private partnerships for research and scalability

 Final Thoughts

The booming global API market offers immense potential for India—not just as a producer but as a global leader in pharmaceutical innovation. With proactive government support, industry digitization, and rising global demand, India is gearing up to redefine its role in the global pharma supply chain.

Pharmatradz.com is not just a tool but a catalyst for this transformation—streamlining global API trade and helping Indian manufacturers scale new heights.