India's pharma sector shifts focus to high-value drugs API self-reliance amid import concerns

New Delhi, Nov 7 (PTI) India's pharmaceutical industry is accelerating its shift from low-cost generics to high-value medicines, complex chemistry and advanced therapies, with manufacturers investing in domestic production of active pharmaceutical ingredients (APIs) to reduce import dependence and strengthen global competitiveness, industry experts said.

    The shift is being driven by changing domestic healthcare requirements, rising demand for chronic disease therapies, expanding export opportunities and government incentives to boost manufacturing capabilities.

    Ahead of CPHI India and PMEC India 2026 -- South Asia's largest and most comprehensive pharmaceutical trade event -- industry leaders emphasised that overcoming import dependence would require strategic investments in advanced manufacturing and proprietary chemical platforms.

     Deepak Jain, CEO and Managing Director of Jubilant Ingrevia, said India's pharmaceutical sector was undergoing an enduring structural shift towards high-value, innovation-led and sustainable manufacturing.

    "As global pharmaceutical companies prioritise supply-chain resilience and complex chemistry, domestic capabilities in APIs, advanced intermediates and CDMO operations will be critical to lowering import dependence," Jain said.

    He highlighted that Jubilant Ingrevia had invested approximately Rs 20,000 million over the last three years to commission several new manufacturing units across 35 technology platforms, anchored by AI-optimised smart manufacturing and a commitment to integrating more than 35 per cent green energy.

    The transition is also being driven by changing healthcare needs, particularly rising demand for medicines to manage diabetes, metabolic disorders and cancer, Jain said.

    According to IQVIA data, India's domestic pharmaceutical market grew 17.1 per cent year-on-year in September 2026, its strongest monthly growth in three years.

    Pharmarack data showed GLP-1 therapies recorded 72 per cent value growth and accounted for 13 per cent of the diabetes market. Government incentives have also supported the industry's expansion.

    According to Pharmexcil data, India's pharmaceutical exports stood at USD 30.47 billion in 2024-25, while shipments during April-June 2026-27 touched USD 8.10 billion, registering 6.8 per cent year-on-year growth.

    Pankaj Banerjee, Head of Global Exports Business and Senior General Manager at Hamdard Laboratories India, said the country's pharmaceutical and AYUSH segments were poised for sustained expansion through 2030, driven by disease prevention, lifestyle wellness, scientific validation and international demand for herbal medicines.     With India importing roughly USD 4.35 billion worth of bulk drugs and APIs in FY25, of which China accounted for 73.71 per cent, he underlined the need for investments in sourcing compliant with Good Agricultural Practices, standardised herbal extracts and stringent Good Manufacturing Practice (GMP).

    Banerjee said Hamdard would showcase its Medicine Division and recent therapeutic additions, including Hinzolax, Lipotab Forte and Hamdoderm, at the upcoming CPHI India exhibition as it expands its presence across more than 50 regulated and semi-regulated markets.

    Alongside raw materials and drug development, advanced packaging technologies are also emerging as an important component of the industry's transition.

    Shiva Kabra, Joint Managing Director of Control Print Ltd, said packaging had evolved into an essential component of product innovation, protection and patient compliance across the pharmaceutical and nutraceutical sectors.

    He said the company would showcase V-Shapes' patented single-dose packaging format alongside automated filling lines for creams, liquids and gels at PMEC India 2026.

    The specialised snap-and-squeeze design prevents formulation degradation, ensures precise dosage delivery and minimises wastage, giving domestic brands a technological edge in regulated export markets, he said.

    Yogesh Mudras, Managing Director of Informa Markets in India, said the domestic pharmaceutical landscape is making rapid strides in global competitiveness and technological sophistication.

    Citing government records showing that around 1.15 lakh jobs had been generated under the pharmaceutical drugs PLI scheme by March 2026, Mudras said coordinated private investment in automation, API synthesis and stringent quality management systems was driving the expansion.

    CPHI India will be held in Delhi from November 23-25 at the India International Convention and Expo Centre (IICC) in Yashobhoomi, Dwarka, while PMEC India will take place from November 24-26 at the India Exposition Mart Ltd in neighbouring Greater Noida.

    Organised by Informa Markets in India, the exhibitions will bring together manufacturers, ingredient suppliers, CDMOs and technology providers from across the pharmaceutical value chain.

(This story has not been edited by THE WEEK and is auto-generated from PTI)