India is the largest supplier of generic medicines globally, accounting for one in five generic drugs sold worldwide, and has earned the title “pharmacy of the world”. Dr. Jayashree Aiyar, chief scientific officer, Syngene International discusses.
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Building on this legacy of large-scale generic supply, India is now advancing into more complex areas of the pharmaceutical value chain, including drug discovery, development, and advanced manufacturing of complex biologics and advanced therapies.
A key driver of this evolution is India’s rapidly growing Contract Research, Development, and Manufacturing Organisation (CRDMO) sector. While it currently accounts for just 2 to 3% of a $140 billion-plus global market, India’s CRDMO industry has delivered an impressive 15% compound annual growth rate between 2019 and 2024, nearly double the global average. This growth signals a fundamental transformation: India is no longer viewed merely as a cost-effective outsourcing hub but is emerging as a strategic partner in global drug innovation and manufacturing.
This progression is taking place at a pivotal moment. The global CDMO market, valued at $184.9 billion in 2024, is projected to nearly double to $368.7 billion by 2034. The convergence of macroeconomic forces is accelerating this momentum. Global pharmaceutical and biotech companies are navigating rising inflation, supply chain challenges, geopolitical tensions, and mounting biotech funding pressures to innovate cost-effectively. These factors are creating strong tailwinds for India’s CRDMO sector.
The COVID-19 pandemic underscored the risks of geographic overconcentration, pushing companies toward more balanced, multi-location sourcing models. This structural shift has provided an India with an unprecedented opportunity. Today’s pharma and biotech firms are prioritising scientific depth, regulatory reliability, and geographic flexibility, a criterion where India’s expertise makes it a strong contender in the global market
India’s value proposition is well aligned with the evolving expectations. Beyond cost advantages, it offers advanced manufacturing infrastructure, growing innovation capabilities, and regulatory support. Policy shifts in key markets, such as the U.S. Inflation Reduction Act, are further catalysing demand for partners that can deliver quality without compromising efficiency. Indian CRDMOs are rising to this challenge, increasingly seen as capable of delivering across the full spectrum of pharmaceutical services.
A strong foundation and intellectual arbitrage
India’s strength in pharmaceutical manufacturing stems from a combination of its strong talent base, supportive infrastructure, and evolving technological capabilities. With nearly half the population under the age of 25, the country produces one of the world’s largest pools of STEM graduates, creating a steady pipeline of skilled professionals for the life sciences industry. This demographic advantage is complemented by India’s growing expertise in areas such as synthetic and analytical chemistry, biologics development, process engineering, and data-driven R&D.
India’s historic strength in chemistry is now being complemented by emerging capabilities in next-generation therapeutics. CRDMOs are expanding into advanced platforms including antibody-drug conjugates (ADCs), RNA-based therapies, PROTACs, plasmid DNA, and cell and gene therapies. Companies like Syngene are investing in scalable, modality-agnostic infrastructure to serve this growing demand.
Technology is also helping drive this shift. Many leading CRDMOs in India like Syngene are adopting automation, AI, robotics, and data analytics to improve efficiency and product quality. At the same time, there is growing focus on sustainability, with companies incorporating ESG principles and green chemistry practices into operations. These efforts reflect the priorities of global pharma companies, who are looking for partners that combine scale with responsibility.
Empowering the workforce through structured programs
While India’s talent pool is large and continuously expanding, aligning academic output more closely with evolving industry needs presents a significant opportunity. Although India produces one of the world’s highest numbers of science graduates, enhancing job readiness beyond the current 60% will unlock even greater potential for the sector’s future growth.
Bridging this gap requires a focused, collaborative effort. Updating academic curricula, expanding industry-led skilling initiatives, and offering targeted training in high-demand areas, such as biologics, cell and gene therapies, and data analytics are essential to ensure that talent can keep pace with industry evolution.
Several government and industry initiatives are already working to address these gaps. Programs like the Skill India Mission, National Skill Development Corporation (NSDC), and Life Sciences Sector Skill Development Council (LSSSDC) are focused on workforce upskilling. The Biotechnology Industry Research Assistance Council (BIRAC) and Healthcare Sector Skill Council (HSSC) are building capabilities in R&D, manufacturing, and regulatory functions.
Regional initiatives are also gaining momentum. The Telangana Global Capability Centre (GCC) Consortium, comprising over 40 life sciences and healthcare companies, is actively developing training frameworks to create a future-ready workforce. In parallel, digital skilling programs under MeitY (Ministry of Electronics and Information Technology) are helping professionals build expertise in AI and digital health, further enhancing India's readiness to meet global demand.
High quality standards and regulatory framework
With more than 750+ US FDA-approved manufacturing facilities, the highest number outside the United States, India has already demonstrated its manufacturing and compliance capabilities. Over the past decade, there has also been a marked improvement in quality standards. Between 2013–14 and 2023–24, the number of ‘official action indicated’ observations from USFDA inspections dropped by 50%, reflecting increased regulatory maturity.
Further confidence in the Indian market is being driven by national and state-level policies such as BioE3, the Bio-RIDE scheme, and targeted incentives for the biotech sector. These initiatives are encouraging investments in infrastructure, innovation, and talent development. While India may take time to reach China’s industrial scale, it is steadily building an integrated ecosystem that spans small molecules, biologics, and newer technology platforms.
In parallel, collaborations between academia and industry are helping strengthen India’s innovation pipeline. These partnerships are playing an important role in building next-generation capabilities that align with the evolving needs of global pharmaceutical and biotech companies.
Charting the next phase of growth for Indian CRDMOs
While India's Contract Research, Development, and Manufacturing Organisation (CRDMO) sector is poised for significant growth, the need of the hour is to shift from incremental progress to bold, future-ready moves that build depth, resilience, and global competitiveness. This will require focused efforts in three key areas:
Reversing brain drain through strategic talent incentives: China's success in attracting overseas-trained scientists back home through programs like the Thousand Talents Plan has significantly bolstered its domestic research capabilities. These initiatives offer competitive salaries, research funding, and infrastructure support, making China an attractive destination for returning scholars. India, while making strides in this direction, needs to amplify its efforts. Developing comprehensive programs that provide not only financial incentives, but also robust research ecosystems can entice Indian scientists abroad to return and contribute to the nation's scientific advancement.
Amplifying R&D investment to foster innovation: India’s GERD (Gross Domestic Expenditure on Research and Development) has stagnated at 0.7% of GDP for over a decade, well below China (2.68%), the US (3.5%), and Israel (5.4%). While this constrains innovation capacity, there are encouraging signs. Over $22 billion in private equity and venture capital has flowed into India’s life sciences sector since 2018, particularly in drug discovery, biotech, health tech, and digital health.
To sustain this momentum, an enabling policy environment is essential, one that supports scale-up of high-potential segments. This includes greater public and private R&D investment, tax incentives for research, and stronger academia–industry collaboration to drive breakthroughs.
Accelerating digital transformation through AI/ML: Artificial Intelligence (AI) and Machine Learning (ML) are reshaping pharma by accelerating drug discovery, streamlining clinical trials, and enhancing manufacturing efficiency. While Indian CRDMOs and pharmaceutical companies have started adopting these technologies, widespread use remains limited. To unlock their full potential, India must strengthen digital infrastructure, upskill talent, and foster partnerships between tech firms and pharma players. Embracing AI/ML can place India at the forefront of next-generation pharmaceutical innovation.
By addressing these priorities with coordinated action from industry, government, and investors, India can confidently transition from a cost-competitive supplier to a strategic innovation partner, shaping the future of global pharmaceuticals and biotech. The journey ahead holds immense promise, and India is well poised to seize this transformative opportunity.