The Indian Contract Research, Development, and Manufacturing Organisation (CRDMO) sector is at an inflection point, with the potential to grow to $22 - $25 billion by 2035, as revealed in a new report, Unleashing the Tiger: Indian CRDMO Sector 2025, published by Boston Consulting Group (BCG) and Innovative Pharmaceutical Services Organisation (IPSO).
BioAsia
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.
Key findings from the report
- India’s CRDMO market is growing at a 15% CAGR, outpacing global industry growth, fueled by its cost advantage over the West and 90% faster project startup times.
- Global supply chain realignments are unlocking a $10 billion opportunity for Indian CRDMOs, with Western pharma companies looking for alternative hubs.
- New modalities such as Antibody Drug Conjugates (ADCs), DNA & RNA therapeutics are witnessing a 25-35% annual growth, providing India with an opportunity to leapfrog in innovation.
- Indian biotech and pharma innovation is accelerating, backed by over INR 25,000 crore in government funding to foster a self-sufficient, local innovation-driven ecosystem.
India holds a 2-3% share of the $140-145 billion global CRDMO market but has the potential to become a global leader. Four key tailwinds are driving this growth: the push to de-risk supply chains is making India a preferred outsourcing destination; pricing pressures and policies like the Inflation Reduction Act (IRA) are accelerating offshoring; rising demand for advanced modalities like ADCs, gene therapy, and RNA therapeutics is boosting specialised CRDMO services; and growing investments in R&D and infrastructure are strengthening India’s innovation ecosystem.
India’s CRDMO sector must overcome five key challenges to sustain growth. It needs a 6-7x talent expansion by 2035, faster regulatory approvals and a stronger tier 1 supplier base to reduce import reliance. Limited funding and high capital costs hinder the 4-5x investment needed, while ESG compliance still lags behind Western peers.
In a step toward advancing India’s CRDMO sector, eleven of the country’s leading CRDMO companies have come together to launch a dedicated industry body called IPSO, bringing together diverse expertise in discovery, development, biomanufacturing, and other specialised areas. This collective initiative aims to advance India’s CRDMO sector and is dedicated to fostering pharmaceutical and healthcare innovation in India, that supports research, policy advocacy and industry collaboration to drive the next wave of biotech and pharma growth.
Commenting on the potential of India’s CRDMO sector, Vikash Agarwalla, managing director and partner at BCG, said: “India’s CRDMO industry is at the beginning of its “Amritkaal”, with many strong tailwinds. Our report highlights how India’s inherent strengths—small molecule expertise, cost competitiveness, and a rapidly growing innovation ecosystem—provides the springboard to becoming a dominant player in the global CRDMO market. However, unlocking this full potential will require collective push from both industry and policymakers. With the right investments in infrastructure, talent, and policy simplifications, we can truly emerge as the innovation and manufacturing hub for the global pharma industry.”
With strategic investments, policy interventions, and global partnerships, India’s CRDMO sector can drive economic growth, job creation, and global pharmaceutical leadership. The next decade presents an unparalleled opportunity to solidify India's position as the world’s leading CRDMO hub.