India’s CRDMO To Touch $25 Bn In Size By 2035

New Delhi: India’s Contract Research Development and Manufacturing Organisation (CRDMO) sector is at an inflection point, with the potential to grow to $22-25 billion by 2035, according to a report.

India currently holds a 2-3 per cent share of the $140-145 billion global CRDMO market but has the potential to become a global leader, according to the report by Boston Consulting Group (BCG) and Innovative Pharmaceutical Services Organization (IPSO). Four key tailwinds that are driving the sector growth include the push to de-risk supply chains, making India a preferred outsourcing destination.

Besides, pricing pressures and policies like the Inflation Reduction Act (IRA) are accelerating offshoring and rising demand for advanced modalities like ADCs, gene therapy, and RNA therapeutics is boosting specialised CRDMO services, the report highlighted. Further, growing investments in R&D and infrastructure are strengthening the country’s innovation ecosystem, it added. The report stated that the 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,” the report stated. Vikash Agarwalla, Managing Director and Partner at BCG stated that the CRDMO industry is at the beginning of a strong growth phase 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,” he stated.

However, unlocking this full potential will require collective push from both industry and policymakers, Agarwalla said. “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,” he added.