India’s API Supply Chain: What Official Import Data Reveals About China Dependency
India has a substantial pharmaceutical manufacturing base, but domestic production does not eliminate dependence on imported active pharmaceutical ingredients (APIs), intermediates and key starting materials (KSMs).
For pharmaceutical manufacturers and chemical suppliers, the important question is not whether India depends on China in general. It is which individual products remain concentrated in Chinese supply chains, how large those imports are, and whether domestic manufacturing can provide a commercially viable alternative.
What India's Official Data Shows
In a parliamentary reply published in March 2026, the Department of Pharmaceuticals disclosed product-level data identifying APIs for which China accounted for at least 70% of India's imports in FY2023–24 and FY2024–25.
| Product | HS code | Imports from China (FY24-25) | China's Share |
|---|---|---|---|
| 6-APA | 29411050 | US$407.64M | 95.92% |
| Erythromycin & derivatives | 29415000 | US$166.31M | 97.65% |
| Other antibiotics | 29419090 | US$694.26M | 88.15% |
| Dicyandiamide | 29262000 | US$70.45M | 97.94% |
| Glycine | 29224910 | US$25.49M | 99.25% |
Is Domestic Manufacturing Replacing Imports?
India has introduced Production-Linked Incentives (PLI) to strengthen domestic manufacturing. By December 2025, 38 greenfield projects covering 28 products were commissioned, establishing ~56,800 metric tonnes/year of capacity.
However, installed capacity is not the same as actual production, and actual production is not the same as commercially competitive supply. Buyers must evaluate quality consistency, manufacturing economics, and reliable delivery at scale.
Where Suppliers Can Find Opportunities
- Products with high import concentration and meaningful import values (e.g., the table above).
- Intermediates for which Indian manufacturers need additional qualified sources.
- Specialty reagents and process chemicals for complex pharmaceutical manufacturing.
- Products where alternative suppliers can demonstrate reliable traceability and regulatory documentation.
High import concentration alone does not prove a new supplier can win business. Commercial attractiveness depends on qualification, production economics, and import rules.