India’s Contract Research, Development, and Manufacturing Organization (CRDMO) sector is on a strong growth trajectory, expected to expand from $7 billion to $14 billion by 2028 at a 14% compound annual growth rate (CAGR), according to a Macquarie Equity Research report. This surge is fueled by increasing pharmaceutical outsourcing, regulatory incentives, and shifts in global supply chains. Policies like the US Biosecure Act could further boost the industry’s CAGR into the high teens, potentially driving its value to $22 billion by 2030. Cost pressures in drug production and geopolitical realignments are also making India a strategic choice for pharmaceutical companies seeking cost-efficient, reliable partners. The country is emerging as a leading hub for small-molecule drug development, reducing reliance on China.
The Asia-Pacific Contract Development and Manufacturing Organization (CDMO) market, valued at over $50 billion in 2023, continues to expand due to cost benefits, outsourcing trends, and global risk diversification. India’s CDMOs offer 30-40% lower production costs compared to Western manufacturers while maintaining high regulatory standards, with approvals from the USFDA and EMA. Additionally, India’s expertise in Active Pharmaceutical Ingredients (APIs), Highly Potent Active Pharmaceutical Ingredients (HPAPIs), and specialty chemicals further cements its position in the global pharmaceutical landscape. With its cost advantages, strong regulatory track record, and rising demand, India’s CRDMO industry is well-placed for sustained expansion in the coming years.
