The Global Reshoring Wave in Pharma: India's Golden Opportunity in the API Market Boom

The global pharmaceutical sector is undergoing a critical transformation. After decades of offshoring for cost efficiency, the tide is turning toward reshoring and nearshoring of Active Pharmaceutical Ingredient (API) manufacturing. Spurred by supply chain vulnerabilities revealed during the COVID-19 pandemic and ongoing geopolitical uncertainties, countries are looking inward or to trusted allies for pharmaceutical security.

Simultaneously, the Global API Market is projected to reach $328.94 billion by 2030, up from $215.9 billion in 2022. This impressive growth trajectory presents a major opportunity for API powerhouses like India.

In this blog, we’ll explore why reshoring is becoming a global trend, how India is strategically positioned to benefit, and what steps the industry must take to become a long-term leader in the pharmaceutical value chain.

The Rise of Reshoring: Why It Matters

Global supply chains were stretched to their limits during the pandemic. The heavy reliance on China for essential APIs caused drug shortages in countries like the US, Japan, and EU nations. In response, many governments introduced policy reforms to reduce import dependence and promote local or regional API production.

What’s Driving Reshoring?

• Supply Chain Disruptions: COVID-19 & geopolitical risks

• Quality Control: Stricter regulations on source materials

• National Security Concerns: Pharmaceuticals now seen as critical infrastructure

Key Global Policy Initiatives for Pharma Reshoring

• Region Initiative
• USA Executive Orders to boost domestic API production
• EU“Open Strategic Autonomy” in pharmaceuticals
• JapanSubsidies to shift API manufacturing from China
• India PLI scheme for APIs and Bulk Drug Parks
• Global API Market: Poised for Explosive Growth

According to industry forecasts, the API market is expected to grow at a CAGR of 5.5%+, hitting $328.94 billion by 2030. This growth is fueled by:

• Increased prevalence of chronic diseases

• A growing generics market

• Innovation in biotechnology APIs

• Regulatory pressure for full traceability and quality assurance

Global API Market Growth Forecast

YearMarket Size (USD Billion)

2022215.9

2025270.5 (estimated)

2030328.94 (projected)

India: Ready to Lead the Next API Wave

India currently accounts for 20% of the global API output and is often referred to as the “Pharmacy of the World.” With a large manufacturing base, competitive costs, and a supportive government, India is uniquely positioned to capitalize on this shift.

Strategic Advantages:

• Over 1,500 WHO-GMP certified manufacturing plants

• Robust export network to over 200 countries

• Skilled and affordable workforce

• Strong domestic pharmaceutical ecosystem

India’s Share in Global API Exports (2023)

CountryShare (%)

China40%

India20%

EU15%

USA10%

Others15%

Challenges & What India Must Do

Despite its advantages, India must address several challenges to retain and expand its market share:

Key Challenges:

• Raw material dependency on China

• Environmental sustainability compliance

• Infrastructure limitations (e.g., ports, electricity)

• Need for digital transformation in manufacturing

The Path Forward: India’s 2030 API Vision

To fully leverage the projected $328.94B market size, Indian companies and policymakers should focus on:

1. Scaling domestic production of KSMs and intermediates

2. Green manufacturing through ESG-compliant processes

3. Investing in AI, IoT, and blockchain for pharma 4.0 readiness

4. Developing CDMO capabilities to serve global biotech and specialty pharma firms

Global Partnerships: The New Currency of Pharma Success

India’s evolution from a bulk supplier to a strategic CDMO and API partner is already underway. Several Indian firms are entering joint ventures with US and EU drugmakers, engaging in:

• Co-development of biologics

• Long-term CDMO contracts

• Supply agreements for complex APIs

Conclusion: Partnering with India Is the Future

The convergence of reshoring, digitization, and API demand creates a once-in-a-decade opportunity for Indian pharma. But this success depends on smart execution and smart connectivity.

Digital platforms like Pharmatradz.com don’t just connect buyers and sellers—they amplify India’s readiness for the global pharmaceutical future.

Want to dive deeper into the API market outlook?
Read: Global API Market to Reach $328.94 Billion by 2030: What It Means for India's Pharma Industry