India has the potential to emerge as a net exporter of Active Pharmaceutical Ingredients (APIs) with government backing, allowing private entities to establish API plants and cater to nations reliant on imports.

Drivers:

1. Global Reputation: Indian pharma industry is hailed as the Pharmacy of the World for its provision of cost-effective, high-quality generic drugs worldwide.
2. Market Share: Generic drugs account for 71% of India's pharmaceutical exports, with North America as the primary importer.
3. Export Figures: In FY 2023, India exported pharmaceuticals worth over 25 billion U.S. dollars.
4. Domestic Growth: Sales of India’s domestic pharmaceutical sector expected to grow 8–10% in FY 2023-24, driven by both domestic expansion and increased exports.
5. Key Export Destinations: India exports pharmaceutical products to various regions, including North America, Africa, EU, ASEAN, Latin America, and the Middle East.

Government initiatives:

1. Infrastructure Strengthening: Government schemes aim to bolster infrastructure facilities with a financial outlay of Rs. 500 crores.
2. Production Incentives: Schemes like the Production Linked Incentive aim to boost investment and production in the pharmaceutical sector.
3. Promotional Schemes: Initiatives like PPDS and PTUAS support the promotion and development of the Indian pharmaceutical industry.

India's medical expenditure is projected to surge by 9-12% in the next five years, positioning the nation among the top 10 globally. With government backing, India is poised to become a net exporter of Active Pharmaceutical Ingredients (APIs). The pharmaceutical industry is anticipated to reach US$ 64 billion by 2024 and US$ 130 billion by 2030, propelled by advancements in skill development, technology integration, and supply chain improvements.