Why US & UK Pharma Companies Are Sourcing Excipients from India

The importance of excipients, the inactive ingredients that are fundamental to drug formulation, has never been more prevalent in the pharmaceutical sector. In the last few years, an increasing number of pharmaceutical companies based in the US and UK have opted to purchase excipients from manufacturers in India, serving as suppliers of drug excipients. To be clear, this is not just a question of cost; it also represents India becoming a globally recognized leader in terms of innovation, meeting required regulatory compliance, and the ability to demonstrating scalable manufacturing.

Moreover, Indian manufacturers are challenging the overall supply chain for drug excipients based in the UK, US, and EU, with superior quality and competitive pricing, as a result of also being able to show their advanced capabilities. In this blog, I will highlight some of the main reasons why this sourcing trend has occurred and why India is now seen as a supplier of choice for global pharmaceutical companies.

Cost Efficiency: A Competitive Advantage

Many pharmaceutical companies around the world source excipients from India because Indian excipient manufacturers can provide excipients at substantial cost savings without sacrificing quality. Indian manufacturers have the benefit of manufacturing scale, an integrated supply chain, and lower overhead, which allows them to sell high-quality excipients at a fraction of the cost to the global market.

In an era of procurement budgets being squeezed, these cost savings greatly benefit companies looking to maintain competitively priced, formulated APIs in regulated markets like the US, UK, and EU. Manufacturers can then, the aim is to strategically reinvest these cost savings into research and development, marketing, and/or increasing production capacity to develop or sustain a competitive advantage in the market.

Indicative Cost Advantage of Indian Excipients vs Global Markets

By procuring from India, organizations can achieve a low-cost alternative to similar quality standards and still meet international pharmacopeia standards, while efficiently optimizing their supply chain budgets. With this ratio of quality and cost combined, it has made India a favorite choice across the world for the biggest pharmaceutical brands.

Key Excipient Types and Applications

Indian manufacturers dominate production of these critical excipients, supplying not just in bulk but also in specialized grades for advanced formulations. The following table outlines some of the most widely sourced pharmaceutical excipients from India, their functions, and key application areas, along with India’s competitive manufacturing strength:

Common Pharmaceutical Excipients Sourced from India and Their Applications

These excipients form the backbone of multiple dosage forms, from fast-disintegrating tablets to extended-release formulations, enabling both innovation and scalability for global pharma companies.

Balancing Affordability and Quality

Critics often ask if lower costs equal lower quality. Nevertheless, GMP-certified lower-cost excipients manufacturers in India operate fully to internationally recognized standards. That is, they show that they meet standards, which include USP/NF, EP, JP pharmacopeias. With advanced technologies for manufacturing, such as spray drying and fluid bed processing, consistency and purity will always be promoted.

Regulatory Excellence: Meeting Global Standards

Indian excipient manufacturers have made heavy investments in compliance, acquiring numerous certifications from US FDA, WHO-GMP, and ISO. These certifications are absolutely vital for US and UK pharmaceutical companies that are under high scrutiny with regulations.

FDA-Approved Facilities

Most of the Indian facilities are FDA-approved units, and comprehensive compliance with Current Good Manufacturing Practices (cGMP) is mandatory for excipient manufacturers. The multiple audits and their documented, transparent practices provide assurance to legitimate international partners. Excipient products such as magnesium stearate and croscarmellose sodium manufactured in India seamlessly pass through impurity profiling and stability testing obligations.

FSSAI and International Accreditations

Beyond pharmaceuticals, Indian manufacturers catering to the food industry also hold FSSAI certifications, underscoring their versatility. This dual expertise is particularly valuable for companies requiring excipients that meet both pharmaceutical and food-grade standards.

Innovation and Customization

The demand for specialized excipients, such as directly compressible grades for oral solids or hypromellose for controlled-release formulations, is rising. Indian manufacturers excel in customization, offering tailored solutions for niche applications.

R&D-Driven Solutions

Leading pharmaceutical excipients manufacturers in India operate state-of-the-art R&D labs, focusing on:

• Particle size optimization for improved flow and compressibility.
• Bioavailability enhancement through novel excipient blends.
• Sustainability initiatives, such as plant-based MCC derived from renewable sources.

For example, a UK-based pharma company recently partnered with an Indian supplier to develop a vegan-friendly disintegrant for chewable tablets, addressing the growing demand for plant-based pharmaceuticals.

Supply Chain Resilience

The COVID-19 pandemic showed how fragile the global supply chain was. It led the Western pharma companies to change where they get their ingredients from. The great infrastructure in India, such as ports, truck and rail networks, and warehouses, means supply is reliable even during a global crisis.

Scalability for Bulk Demand

Indian bulk pharmaceutical excipients supplier networks are scalable. If a company needs 1 ton or 100 tons of excipients a month, the manufacturers can make it fast. This is important because the need for excipients can be sudden and urgent, like during a vaccine cycle.

Geopolitical Stability

Unlike areas where supply chains can be cut by trade restrictions or where there is a lot of unrest, India has a business climate that is steady and friendly to manufacturing. The “Make in India” push helps boost local manufacturing and keeps the supply chain more secure.

Sustainability: A Growing Priority

Sustainability is no longer a buzzword but a business imperative. Indian excipient manufacturers are adopting eco-friendly practices, such as:

• Waste reduction: Closed-loop water systems and solvent recovery.
• Renewable energy: Solar-powered plants reducing carbon footprints.
• Biodegradable packaging: Transitioning from plastic to compostable materials.

These efforts align with the sustainability goals of US and UK pharma companies, which face increasing pressure to reduce environmental impact.

Conclusion: India’s Unmatched Value Proposition

US and UK pharma companies chose to procure excipients from India due to a combination of cost efficiency, regulatory compliance, innovation, and supply chain stability. Pharmaceutical excipients manufacturers in India have demonstrated their ability to deliver high-quality excipients from large manufacturers in India that are GMP-certified to global standards. As demand for high-quality, specialized, and sustainable excipients expands, India’s role as a strategic partner is only likely to grow.

For companies looking for a reliable partner in this space, Ankit Pulps and Boards Pvt. Ltd. models best practices in the industry, including FDA and FSSAI approval for R&D labs, pharmaceutical-grade GMP processes, and a commitment to innovation. The supplier continues to rely on strategic suppliers, but more on recommending and assisting developing nations supply chain solutions. By working with Indian suppliers, global pharma companies are not only saving money but putting time and effort considered for a envisioned sustainable future supply chain.