By: Rahul Koul
Last updated : November 03, 2025 8:33 am
Building a transparent, data-driven supply chain and self-reliant API ecosystem remains critical to reducing import dependence
India’s pharmaceutical and specialty chemical sectors are at a defining crossroads, balancing their legacy of manufacturing excellence with the urgent need for innovation, digital transformation, and self-reliance.
At a recent industry dialogue organized by Indian Pharma Post and Indian Chemical News in association with Alleima, industry leaders and experts shared their perspectives on how collaboration, technology, and a renewed focus on core sciences can shape the next phase of India’s growth.
The maiden event titled “Corrosion Risk Management and Process Safety in Pharma and Chemical industry” held on October 15, 2025, in Hyderabad, received an enthusiastic response from participants.
A highlight of the event was the panel discussion on “Indian Pharma Sector: Challenges and Opportunities,”moderated by Pravin Prashant, Executive Editor, Indian Pharma Post, which brought together some of the most influential voices from the industry and academia.
Pravin Prashant provided an overview of India’s rapidly expanding pharmaceutical landscape, emphasizing the sector’s scale, export strength, and future potential.
“India’s pharmaceutical market, currently valued at USD 50 billion in FY 2023–24, is projected to reach US$ 120–130 billion by 2030 and US$ 450 billion by 2047, driven by strong domestic demand and robust exports. India remains the largest global supplier of generic medicines by volume and a leading exporter of vaccines, with pharmaceutical exports touching USD 27.8 billion in FY 2024, the U.S. being its key market. Going forward, India’s shift from a volume-based to a value-based model, fueled by innovation, AI, and digital transformation, is paving the way for the next phase of growth. Rising incidences of chronic diseases and India’s proven ability to deliver high-quality, affordable medicines position it as a crucial player in strengthening both global and domestic healthcare systems,” stated Prashant.
Sharing his thoughts, Ch. A. P. Rameswara Rao, National President, BDMAI opined that despite the immense potential to expand manufacturing rapidly, he would prefer India choosing a cautious and strategic approach.
“Having worked closely with Japan, I have seen how external factors can impact exports and supply chains. Despite being highly competitive, uncertainties still persist but I remain hopeful that we can overcome these challenges and emerge stronger on the global stage. Coming to regulatory matters, the global standards set by the USFDA, EMA, and other agencies often pose hurdles and delays for Indian pharmaceutical companies, both domestically and internationally. The key question is how can India streamline its regulatory processes while maintaining the highest quality standards? This is indeed a major challenge, but with our focus on high-quality manufacturing and accountability, I believe we can address it effectively. In Hyderabad, for instance, where many regulatory-driven companies operate, we are already seeing a commitment to global benchmarks,” stated Rao.
“With continued support and collaboration from international regulators, I am confident that these are temporary obstacles. In the long term, India’s manufacturing ecosystem will emerge even stronger, delivering world-class products that meet global expectations. In terms of imparting education in chemistry, there is no clear policy by the government as without the quality human resources, the future of the industry is at the stake. There is a major lacuna in terms of skilled workers for bulk drug industry as most of the educational institutes offer courses in lucrative subjects like Information Technology (IT). Therefore, the availability of resources in a major challenge for us,” Rao added further.
Dr. Paidi Yella Reddy, Founder, President & CEO, Sapala Organics expressed his optimism on the Indian pharmaceutical industry’s tremendous progress yet emphasized that innovation and discovery remain the missing links.
“Historically, many pharmaceutical companies in India were founded by businesspeople rather than scientists or technologists. Their focus was naturally on trade, expansion, and profitability and not on R&D or new drug discovery. While that approach built strong enterprises and employment, it didn’t create a deep innovation culture. Innovation requires patience, risk-taking, and substantial funding, often running into millions or billions of dollars. For a long time, Indian companies lacked the resources or ecosystem needed to support that level of research. But today, things are beginning to change. There is a growing realization that profits alone aren’t enough; we must reinvest in science, research, and long-term capability building,” said Reddy.
“In India, funding for research, especially for startups and early-stage innovation, is still very limited. Grants of Rs 5–10 lakh from programs like Atal Incubation Centers are not sufficient for modern scientific research, which requires advanced equipment, infrastructure, and long-term financial commitment. Government and industry leaders need to rethink this approach. Short-term commercial gains are fine, but for sustainable growth, India must invest in deep research and innovation. This includes stronger public–private partnerships, better coordination between academic institutions and industries, and policies that promote risk-taking in scientific ventures. The government today has far more resources and capacity than before. If we create such an environment, I have no doubt that India’s pharmaceutical sector can evolve from being the “pharmacy of the world” to the “innovation hub of the world,” Reddy added further.
Dr. K. Nagaiah, Chief Scientist, CSIR–IICT, Hyderabad called for a national movement to revive interest and respect for chemistry, also pointing to India’s continued dependence on imported APIs, as a strategic vulnerability.
“We often see that industry leaders themselves encourage their children to pursue computer science or IT, not chemistry. This reflects a larger societal trend where careers in technology are seen as more rewarding or aspirational. But this attitude poses a serious challenge for the future of pharma and scientific research. In countries like the United States, organizations such as the American Chemical Society actively promote chemistry at the grassroots level. We need a similar cultural movement in India to rekindle respect and enthusiasm for chemistry. Addressing USFDA compliance gaps is another priority. Several Indian companies have received warning letters for non-compliance, yet the information is often underreported. Transparency is critical, and companies must shift from a compliance-only mindset to a quality-first culture embedded throughout their organization,” said Dr Nagaiah.
“The government has introduced production-linked incentive (PLI) schemes to encourage self-reliance in API manufacturing. For 2022–23, the government allocated Rs 1,500 crores under PLI, selecting 48 projects covering 25 key drugs, with total investments committed around Rs 4,000–5,000 crores. The objective is to encourage companies to produce both APIs and key intermediates domestically, ensuring sustainable production and reducing import dependence. The government is also supporting the development of Bulk Drug Parks, providing up to Rs 1,100 crores in grants covering 70% of project costs in certain regions. Collectively, bridging gaps between industry capability and government policy is essential to achieve self-reliance, reduce dependence on imports, and contribute meaningfully to global API supply,” added Dr Nagaiah.
Dr. Satyanarayana Thirunahari, Senior GM – Process Safety & Engineering, Laurus Labs, stressed that the industry must first take responsibility for creating a safer and more attractive environment for future generations to return to core sciences.
“Over the years, frequent industrial incidents have made younger professionals wary of chemical manufacturing. The safety must begin at the bench, with chemists and engineers designing inherently safer processes from the earliest experimental stage. Before any process moves to production, chemists must thoroughly understand the properties and potential hazards of chemicals involved. Tools developed by organizations like the American Chemical Society and Green Chemistry frameworks can guide safer reagent selection and process design. Once a feasible process is developed, process safety teams should evaluate possible secondary or decomposition reactions, runaway scenarios, and powder or reaction hazards before scale-up. This data, when properly communicated to manufacturing teams, ensures safe execution on the shop floor and prevents accidents. Artificial Intelligence (AI) and Machine Learning (ML) have to play a transformative role in the pharmaceutical sector. While AI concepts have existed for decades, their impact has accelerated with the rise of digital, structured data,” said Dr Thirunahari.
He identified three major AI applications: descriptive, predictive, and prescriptive analytics, that are reshaping drug discovery and manufacturing. “At Laurus Labs, the team has created a digital DNA of over 10,000 reactors, mapping their geometry and parameters. AI models can now instantly identify the best reactor for a new process, improving speed, safety, and accuracy.”
K. V. Rama Gopal, Site Manager & Executive Director, Clariant India, highlighted the need for pharma and technology to converge as this collaboration holds the key to solving many of the industry’s long-standing challenges.
“The expertise of professionals trained in computer science and IT can bring immense value to pharma through digitalization, automation, and AI-driven insights. AI and data analytics are already transforming discovery and development, but to fully harness their potential, AI literacy and data competencies must be built across all organizational levels. Another point is about industry–academia collaboration. While the industry today is ready to support collaborative research projects, the challenge often lies in alignment. The academic institutions work with time-bound objectives, while industries seek outcome-oriented innovation. We need a structured mechanism to bridge this gap. At the same time, we must address the financial realities faced by young scientists,” opined Gopal.
“Today’s students are drawn toward flexible, well-paying roles in technology rather than waiting years for uncertain research outcomes. To reverse this trend, financial and institutional support through CSR initiatives, fellowships, and incentives is essential. Finally, we should remember that everything in technology, from computing to AI, still rests on the foundation of chemistry and material science. Whether it’s the rise in commodity prices, be it silver, copper, or others or the evolution of advanced materials, it all circles back to chemistry. Without chemistry, there is no technology. Without basic sciences, there is no innovation. That is a reality we must re-emphasize to the next generation,” Gopal added further.
Yadavendra Shalgaonkar, Assistant General Manager – Tube Sales, Alleima India, highlighted that a reliable and transparent supply chain is now crucial to sustaining the rapid growth of India’s pharmaceutical and specialty chemical industries. He elaborated on Alleima’s role in strengthening this ecosystem through material innovation, faster delivery enabled by localized manufacturing, and uncompromising quality and safety standards.
“Alleima’s role is to support this ecosystem through three key enablers. Firstly, in terms of material development, we work closely with our R&D teams to identify and test materials suitable for different molecules, ensuring they can withstand corrosion and process challenges. With our data-driven approach and AI-enabled analysis, we can quickly evaluate performance and sustainability aspects. Secondly, for speed and proximity, we have manufacturing plants strategically located close to our customers, which helps ensure faster delivery and minimal downtime. And thirdly, the quality and safety remain our highest priorities. We maintain sufficient inventories and follow stringent quality protocols so that our partners can rely on us for consistent, compliant, and safe material supply. In essence, Alleima is building a transparent, data-backed, and resilient supply chain to support the evolving needs of India’s pharma and specialty chemical sectors,” stated Shalgaonkar.