The Indian pharmaceutical industry is all set to overtake Italy as the world's second largest manufacturer of active pharmaceutical ingredients (API).The Indian API manufacturing industry is currently the third largest in the world. It is expected to generate sales of $4.8 billion by 2010 from $2 billion in 2005, at an average yearly growth rate of 19.3%, according to a study conducted by Italy's Chemical Pharmaceutical Generic Association. According to D.G. Shah, Secretary-General, Indian Pharmaceutical Alliance, exports of API from India are expected to touch $10 billion by 2010, if when including the number of drug master file (DMF) submissions.
According to the study, sales by Italian API manufacturers are expected to increase to $3.3 billion by 2010 from $3.2 billion in 2005. China is currently the largest API manufacturer and is set to maintain its growth. The country is expected to see API sales increase to $9.9 billion from $4.4 billion in 2005. India and China are increasing their market share in the API market, however, the report cautioned European API manufacturers to try and improve their market shares through cost cutting, as they appear to be losing share in a rapidly growing market.