How India Can Lead the Global Shift in API Self-Reliance Amid Tariff Pressures
This article is authored by Ms Shivani Wagh, Joint Managing Director, Supriya Lifescience Ltd
In recent years, the global pharmaceutical landscape has witnessed growing momentum towards self-reliance in Active Pharmaceutical Ingredient (API) manufacturing, particularly amid rising tariff pressures and disrupted global supply chains. India, with its robust pharma legacy, is well-positioned to lead this shift, but realising this potential requires a strategic and multi-pronged approach.
To begin with, strengthening local manufacturing is key. While India has already made significant strides in API production, scaling this further is essential to reduce dependence on imports. A strong and consistent manufacturing base will not only enhance supply chain resilience but also ensure long-term sustainability and cost efficiency.
The government's role in this transformation is crucial. Initiatives such as the Production-Linked Incentive (PLI) scheme are commendable steps towards incentivising domestic API manufacturing. However, support must go beyond financial incentives. Streamlining regulatory processes and ensuring faster approvals remain pressing needs. Regulatory delays can hinder production timelines and deter new entrants from the market. A simplified and responsive framework will give the industry the confidence and clarity it needs to grow.
Moreover, supportive policies that foster a conducive business environment can accelerate this journey. Whether it's easing compliance burdens, ensuring access to affordable utilities, or enabling ease of doing business, policy support must be holistic and consistent across the board.
Innovation and R&D are other powerful levers that can shift the equation in India's favour. Focused investments in research can reduce production costs, improve process efficiencies, and enable manufacturers to scale operations sustainably. When coupled with backwards integration, this can offer a significant competitive edge, ensuring cost advantages, stable raw material supply, and enhanced control over quality and timelines.
It's also important to recognise that API manufacturing is capital-intensive and infrastructure-heavy. Setting up and running facilities requires considerable investment and high-grade infrastructure, including uninterrupted power and water supplies, efficient waste management systems, and transportation networks. Here too, the government must step in to build and upgrade pharma-friendly infrastructure that supports large-scale, compliant, and sustainable manufacturing.
With a focused approach that encompasses stronger local manufacturing, supportive government policies, streamlined regulations, innovation-driven R&D, and infrastructure development, India is well-positioned to lead the global shift towards API self-reliance. Embracing these measures will not only strengthen India's pharmaceutical ecosystem but also secure its position as a leading force in the global active pharmaceutical ingredient (API) market.
Disclaimer: The opinions expressed above are of the author and may not reflect the views of DSIJ.