CRDMO Likely to Grow Into $25-Billion Business in 10 Years

Hyderabad: The Contract Research, Development, and Manufacturing Organisation (CRDMO) sector in India is at an inflection point, with the potential to grow to $22 billion to $25 billion by 2035, according to a report published by the Boston Consulting Group (BCG) and the Innovative Pharmaceutical Services Organisation (IPSO).

The report highlights India's strong foundation in small molecule capabilities, sustainable cost advantages, and emerging biologics expertise, positioning the country as a global leader in pharmaceutical innovation.

It states that India’s CRDMO market is growing at a 15 per cent compound annual growth rate, outpacing global industry growth, driven by its cost advantage over the West and 90 per cent faster project startup times. Global supply chain realignments are unlocking a $10 billion opportunity for Indian CRDMOs, as Western pharma companies seek alternative hubs.

Indian biotech and pharma innovation is accelerating, backed by over Rs 25,000 crore in government funding to foster a self-sufficient, locally driven innovation ecosystem.

India holds a 2-3 per cent share of the $145-billion global CRDMO market but has the potential to become a global leader. The push to de-risk supply chains is making India a preferred outsourcing destination, while pricing pressures and policies such as the Inflation Reduction Act (IRA) are accelerating offshoring, the report states.

However, India’s CRDMO sector requires seven times more talent by 2035, faster regulatory approvals, and a stronger Tier 1 supplier base to reduce import reliance. Limited funding and high capital costs, it notes.

“The report highlights how India’s inherent strengths — small molecule expertise, cost competitiveness, and a rapidly growing innovation ecosystem — provide the springboard for becoming a dominant player in the global CRDMO market. However, unlocking this full potential will require a collective push from both industry and policymakers,” said Vikash Agarwalla, managing director and Partner at BCG.