India's CRDMO sector looks to expand, looks to touch Rs. 2,17,125 crore (US$ 25 billion) by 2035: Report

India's contract research, development, and manufacturing organisation (CRDMO) sector is set for significant expansion, with projections indicating a market size of Rs. 1,91,070- 2,17,125 crore (US$ 22-25 billion) by 2035. A report by Boston Consulting Group (BCG) and the newly formed Innovative Pharmaceutical Services Organisation (IPSO) attributes this growth to India's cost advantages, rapid project startups, and increasing expertise in biologics, positioning the country as a global pharmaceutical innovation hub. With a projected compound annual growth rate (CAGR) of 15%, India’s CRDMO market is expected to outpace global growth, driven by global supply chain realignments and rising demand for advanced therapies such as antibody-drug conjugates (ADCs), DNA and RNA therapeutics, and gene therapy.   

Currently holding a 2-3% share of the Rs. 12,15,900-12,59,325 crore (US$ 140-145 billion) global CRDMO market, India has a Rs. 86,850 crore (US$ 10 billion) opportunity as Western pharmaceutical companies seek alternative hubs. Growth drivers include supply chain diversification, pricing pressures, and policies like the Inflation Reduction Act (IRA) accelerating offshoring. However, challenges remain, including the need for a six- to sevenfold expansion of the talent pool by 2035, faster regulatory approvals, a stronger tier-I supplier base, increased funding, lower capital costs, and improved environmental, social, and governance (ESG) compliance. To address these, 11 leading Indian CRDMO firms have launched IPSO to strengthen India’s global pharmaceutical value chain position. The government has allocated over Rs. 25,000 crore (US$ 2.88 billion) to boost biotech and pharmaceutical innovation. The report highlights five imperatives for unlocking India's CRDMO potential: accelerating talent development, streamlining policies, strengthening the supplier ecosystem, expanding capital access, and enhancing sustainability. 

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