NewKerala.com

India's Pharma Boom: How CRDMO Sector Aims for 5% Global Market Share

India's Contract Research, Development and Manufacturing Organization sector is on a fast track. A new report forecasts explosive growth, with the market size nearly doubling by 2029. This surge is powered by global companies seeking to diversify their supply chains away from China. With deep expertise and cost advantages, India is poised to become a central player in global drug development.

Key Points: India CRDMO Sector Growth 13% CAGR to Hit 5% Market Share

  • Sector projected to grow from $8.2B to $15.4B by 2029 at 13% CAGR
  • Global market share expected to rise from 3.8% to 5% in five years
  • Growth fueled by China+1 supply chain diversification and lower costs
  • Indian firms moving up value chain into integrated research and manufacturing
2 min read

India's CRDMO sector set to grow at 13% CAGR, market share seen rising to 5% by 2029: Report

India's CRDMO sector is projected to grow at 13% CAGR, reaching a 5% global market share by 2029, driven by supply chain shifts and cost advantages.

"India stands to capture USD 5 billion of outsourcing demand migrating from China and other regions. - Kotak Mutual Fund Report"

New Delhi, December 11

India's Contract Research, Development and Manufacturing Organisation (CRDMO) sector is poised for accelerated growth, supported by surging global pharma outsourcing, rising demand for complex modalities, and geopolitical supply-chain realignment, according to a report by Kotak Mutual Fund.

The report sourced from multiple industry studies notes that the Indian CRDMO market is projected to clock a 13 per cent CAGR between FY24 and FY29, expanding from USD 8.2 billion in 2024 to USD 15.4 billion by 2029.

CRDMO stands for Contract Research, Development, and Manufacturing Organization, a type of company in the pharmaceutical and biotech industry that offers integrated, end-to-end services.

India's global market share is expected to rise from 3.8 per cent in 2024 to 5 per cent by 2029, driven largely by business diversion from Rest-of-World markets.

The report highlights that the global CRDMO industry itself is expanding at a 9 per cent CAGR, driven by rising drug development complexity, growing biotech pipelines, and increasing reliance on outsourced development and manufacturing.

India, currently a nascent but rapidly scaling participant in the global CRDMO landscape, is emerging as a competitive alternative destination for advanced pharma outsourcing.

The country houses the highest number of US-FDA-approved API manufacturing facilities globally, and benefits from significantly lower capex and operating costs compared to the US, Europe, and most of APAC.

The report attributes India's right to win to a combination of deep process-chemistry expertise, strong regulatory track record, and an expanding talent pool. India accounts for 29 per cent of STEM graduates globally, far ahead of most developed economies.

The report notes that China+1 dynamics remain a major structural tailwind. With global pharma companies diversifying supply chains, India stands to capture USD 5 billion of outsourcing demand migrating from China and other regions.

Chinese CRDMO firms have grown at a strong 24 per cent CAGR in 2019-24, but geopolitical risks and client concentration concerns are prompting multinational firms to diversify.

Indian CRDMO companies are increasingly moving up the value chain, expanding from legacy intermediate manufacturing into integrated research-to-commercial manufacturing, supported by significant industry capex.

Overall, the outlook for India's CRDMO sector remains robust, with the industry expected to play an increasingly central role in global pharma R&D and manufacturing as companies seek cost-efficient, high-quality, and diversified outsourcing partners.

- ANI

Share this article:

Reader Comments

A
Arjun K
Great potential, but we must be cautious. Moving up the value chain from basic manufacturing to integrated R&D is easier said than done. We need sustained investment in cutting-edge research facilities and retaining our top STEM talent, not just producing graduates.
R
Rohit P
The fact that we have the highest number of US-FDA approved plants is our biggest strength. Quality and cost-effectiveness together is a winning combo. Hope this growth translates into more high-skill jobs for our engineers and scientists.
S
Sarah B
As someone working in the biotech sector abroad, I've seen the shift firsthand. Many companies are actively looking at India as a serious alternative for complex drug development, not just generic manufacturing. The momentum is real.
V
Vikram M
While the report is optimistic, the jump from 3.8% to 5% global share by 2029 seems modest. China is still miles ahead. We need more aggressive policy support and faster regulatory clearances to truly capitalize on this 'tailwind'.
K
Kavya N
This is the kind of high-value manufacturing and innovation we need. It's not just about numbers, it's about building intellectual property and becoming a knowledge hub. Hope the focus remains on sustainable and ethical growth. 🙏

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50