A new BCG-IPSO report highlights how India’s CRDMO firms are scaling talent, infrastructure, and innovation to capture a larger share of the $145 billion global pharma outsourcing market.
India’s Contract Research, Development, and Manufacturing Organization (CRDMO) sector is undergoing a transformation, with projections placing it at $25 billion by 2035. A new report, “Unleashing the Tiger: Indian CRDMO Sector 2025”, published by Boston Consulting Group (BCG) and Innovative Pharmaceutical Services Organization (IPSO), outlines India’s growing influence in global pharmaceutical innovation.
The report highlights how eleven leading CRDMO firms have joined forces under IPSO to move beyond traditional outsourcing. The goal is to position India as a leader in biologics, RNA therapeutics, and advanced drug development, with strong support from government-backed initiatives and global supply chain shifts.
India’s CRDMO market is expanding at a 15% CAGR, surpassing global industry growth. As pharmaceutical companies diversify manufacturing beyond China, India’s expertise in small molecules, biologics, and Antibody Drug Conjugates (ADCs) presents a major advantage. The report states that global supply chain realignments are unlocking a $10 billion opportunity for Indian CRDMOs.
Peter Bains, CEO Designate of Syngene International Ltd., emphasized that India is no longer just a low-cost outsourcing hub but is advancing towards high-value pharmaceutical innovation. He stated that IPSO’s efforts would accelerate India’s leadership in cutting-edge drug research and biomanufacturing.
IPSO’s Role in India’s CRDMO Expansion
IPSO is bringing together leading Indian CRDMOs, including Syngene International, Aragen Life Sciences, Piramal Pharma Solutions, Sai Life Sciences, Neuland Laboratories, Aurigene, and Jubilant Biosys. This coalition aims to enhance India’s drug discovery capabilities, strengthen regulatory frameworks, and promote international partnerships.
Manni Kantipudi, CEO of Aragen Life Sciences, noted that IPSO represents a strategic shift for the Indian CRDMO sector. He highlighted that India must move beyond small-molecule manufacturing and focus on biologics, ADCs, and gene therapies to capture a larger share of the $145 billion global CRDMO market.
Vikash Agarwalla, Managing Director at BCG, emphasized that while India’s cost advantage, talent pool, and policy support are strong, the industry must address critical funding, regulatory, and sustainability challenges to fully capitalize on the $25 billion potential.
Key Challenges on the Road to $25 Billion
Despite strong growth, India’s CRDMO sector must overcome several challenges to achieve its full potential. The BCG-IPSO report outlines five key areas that require immediate attention:
India needs to scale its talent pool by 6-7x by 2035, particularly in biologics, ADCs, and gene therapy. The regulatory approval process must be streamlined to enable faster clinical trials and drug approvals. IPSO is advocating for a more competitive regulatory framework to help Indian firms compete with United States, European Union, and Japan in securing global partnerships.
India currently imports a significant portion of its Active Pharmaceutical Ingredients (APIs), making supply chain resilience a key focus. Strengthening the domestic Tier 1 supplier base is crucial to reducing dependence on imports. Capital investment in CRDMOs needs to increase by 4-5x to build world-class R&D infrastructure. IPSO is working with policymakers to encourage financial incentives for research, manufacturing, and digital transformation.
With global pharma firms adopting Environmental, Social, and Governance (ESG) compliance standards, Indian CRDMOs need to align with sustainable manufacturing practices to remain competitive in international markets.
Global Pharma’s Shift: India’s Growing Influence in CRDMO
The global pharmaceutical industry is evolving, and India is emerging as a preferred destination for contract research and drug development.
Pharmaceutical giants are actively diversifying their supply chains, with a shift away from China to India and Southeast Asia. Regulatory policies such as the US Inflation Reduction Act (IRA) are encouraging offshoring to cost-effective hubs like India. Additionally, the Indian government’s ₹25,000 crore R&D investment is fueling the country’s rise as a center for biologics, cell and gene therapy, and next-generation drug manufacturing.
Smruthi Suryaprakash, Partner at BCG, explained that IPSO is helping Indian CRDMOs move beyond outsourcing to full-scale drug discovery. She noted that India is now competing with the world’s top pharmaceutical research hubs and has the potential to become a leader in high-value drug manufacturing.
India’s CRDMO Future: A $25 Billion Global Opportunity
With IPSO driving collaboration, India’s CRDMO sector is poised to play a central role in global pharmaceutical research and manufacturing. The next decade will determine whether India can fully capitalize on its scientific expertise, infrastructure, and policy advantages to secure a larger share of the global pharma market.
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