New Delhi [India], December 11 (ANI): India’s Contract Research, Development and Manufacturing Organisation (CRDMO) sector is set for rapid expansion, driven by rising global pharma outsourcing, increasing demand for complex drug modalities, and shifting geopolitical supply chains, according to a new report by Kotak Mutual Fund.
The report, which draws on multiple industry studies, estimates that the domestic CRDMO market will grow at a 13% CAGR between FY24 and FY29, nearly doubling from USD 8.2 billion in 2024 to USD 15.4 billion by 2029. India’s share in the global CRDMO market is projected to increase from 3.8% in 2024 to 5% by 2029, aided largely by business moving away from other global markets.
Globally, the CRDMO industry is expanding at a 9% CAGR, supported by increasing drug development complexity, larger biotech pipelines, and higher demand for outsourced R&D and manufacturing.
India, still an emerging but fast-growing player in the global CRDMO arena, is increasingly becoming a preferred destination for advanced pharmaceutical outsourcing. The country hosts the largest number of US-FDA-approved API manufacturing facilities worldwide and offers significantly lower capital and operational costs compared with the US, Europe, and much of the Asia-Pacific region.
The report identifies India’s competitive strengths as its deep process-chemistry expertise, strong regulatory record, and a large talent base—India accounts for 29% of global STEM graduates, far surpassing most developed nations.
China+1 supply-chain diversification trends also provide a major long-term boost. As multinational drugmakers seek alternatives to reduce geopolitical and concentration risks, India is positioned to capture USD 5 billion worth of outsourcing demand shifting from China and other regions. While Chinese CRDMOs grew at a strong 24% CAGR between 2019 and 2024, concerns over geopolitical exposure are pushing clients to diversify.
Indian CRDMO firms are also moving higher up the value chain, expanding from traditional intermediate manufacturing to integrated services spanning research to commercial-scale production, backed by rising industry investments.
Overall, the outlook for the sector remains highly positive, with India expected to play a growing role in global pharma R&D and manufacturing as companies look for cost-efficient, high-quality, and diversified outsourcing partners.
348 words, 2 minutes read time.
About The Author
