India becoming an attractive option for global pharmaceutical supply chain: Macquarie Report

India’s Contract Research, Development, and Manufacturing Organization (CRDMO) industry is set to grow from Rs. 60,641 crore (US$ 7 billion) to Rs. 1,21,282 crore (US$ 14 billion) by 2028 at a 14% compound annual growth rate (CAGR), driven by pharmaceutical outsourcing, regulatory support, and global supply chain shifts, according to Macquarie Equity Research. Regulatory policies like the United States (US) Biosecure Act could further accelerate growth to a high-teens CAGR, potentially pushing the sector to Rs. 1,90,586 crore (US$ 22 billion) by 2030. The industry benefits from cost pressures in drug manufacturing and geopolitical shifts as global pharmaceutical companies look for cost-effective, reliable partners. India is emerging as a preferred destination for small-molecule drug development and production, reducing dependency on China.

The Asia-Pacific pharmaceutical Contract Development and Manufacturing Organization (CDMO) sector, valued at over Rs. 4,33,150 crore (US$ 50 billion) in 2023, is expanding due to cost advantages, outsourcing trends, and geopolitical risks. India’s CDMOs offer 30-40% lower costs than Western manufacturers while maintaining a strong regulatory track record with approvals from the United States Food and Drug Administration (USFDA) and the European Medicines Agency (EMA). India also has expertise in Active Pharmaceutical Ingredients (APIs), Highly Potent Active Pharmaceutical Ingredients (HPAPIs), and specialty chemicals, further strengthening its global pharma supply chain position. With a favorable regulatory environment, cost benefits, and rising global demand, India's CRDMO sector is well-positioned for sustained long-term growth.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.