New Delhi [India], February 25 (ANI): The Indian Contract Research, Development, and Manufacturing Organization (CRDMO) sector is expected to touch USD 22 billion to USD 25 billion by 2035, according to a report by the Boston Consulting Group (BCG) and Innovative Pharmaceutical Services Organization (IPSO).
As per the report, India’s CRDMO market is growing at a 15 per cent CAGR, outpacing global industry growth, fueled by its cost advantage over the West and 90 per cent faster project startup times.
The report also noted that Western pharmaceutical corporations are searching for alternate centres, while global supply chain realignments are opening up a USD 10 billion opportunity for Indian CRDMOs.
According to the report, new modalities like DNA and RNA therapies and antibody drug conjugates (ADCs) are growing by 25-35 per cent annually, giving India the chance to lead the world in innovation.
The report stated that Indian biotech and pharmaceutical innovation is growing, supported by more than Rs 25,000 crore in government financing to create a local, self-sufficient ecosystem powered by innovation.
India holds a two to three per cent share of the USD 140-145 billion global CRDMO market but has the potential to become a global leader.
As per the report, India is becoming a preferred outsourcing destination due to the push to de-risk supply chains; offshoring is being accelerated by pricing pressures and policies like the Inflation Reduction Act (IRA).
According to the report, specialised CRDMO services are being boosted by the growing demand for advanced modalities like ADCs, gene therapy, and RNA therapeutics.
The report further said that India’s innovation ecosystem is being strengthened by growing investments in R&D and infrastructure.
Furthermore, the report added that India’s CRDMO sector must overcome five key challenges to sustain growth. It needs a 6-7x talent expansion by 2035, faster regulatory approvals and a stronger tier 1 supplier base to reduce import reliance. Limited funding and high capital costs hinder the 4-5x investment needed, while ESG compliance still lags behind Western peers, the report said.
Peter Bains, CEO Designate, Syngene International Ltd said, “The Indian CRDMO sector is positioned for major transformation, with the potential to become a leader in serving the global biopharma and wider life sciences outsourcing market models. Realizing this opportunity will require change and collaboration among all stakeholders in the Indian CRDMO ecosystem.”
Smruthi Suryaprakash, Partner at BCG, adds, “By addressing regulatory bottlenecks, fostering cutting-edge R&D collaborations, and scaling talent development, India can emerge as a leader not just in small molecules but in next gen technologies. The time to act is now – building a world-class CRDMO ecosystem will be crucial to India’s ambition of becoming a global life sciences hub.” (ANI)
