Global supply chain realignments are unlocking a $10 billion opportunity for Indian CRDMOs

The Indian Contract Research, Development, and Manufacturing Organization (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 Organization (IPSO). 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 per cent CAGR, outpacing global industry growth, fuelled by its cost advantage over the West and 90 per cent 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 per cent annual growth, providing India with an opportunity to leapfrog in innovation.
· Indian biotech and pharma innovation is accelerating, backed by over Rs 25,000 crore in government funding to foster a self-sufficient, local innovation-driven ecosystem.

In a step toward advancing India’s CRDMO sector, 11 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.

Peter Bains, CEO Designate, Syngene International, emphasised the importance of such collaborations among all stakeholders to realise growth. "The Indian CRDMO sector is positioned for major transformation, with the potential to become a leader in serving the global biopharma and wider life sciences outsourcing market models. Realising this opportunity will require change and collaboration among all stakeholders in the Indian CRDMO ecosystem. As leading industry players, we must express vision, ambition and intent to move beyond our recognized strengths in small molecule development and manufacturing and into new technologies and modalities, to realise the inherent potential. We will also need to work with and collaborate with the government to foster a more competitive regulatory and financial ecosystem in India to compete with other geographies."

Bains added, "We will need to work with India’s academic ecosystem to ensure a strong flow of highly talented scientists, engineers and technology leaders to ensure we are capability competitive. Only by working together, can we unlock new opportunities in drug discovery, process innovation, and advanced manufacturing, that can strengthen India’s position in the global pharmaceutical value chain. This is where IPSO serves as a catalyst, bringing together leading CRDMOs to drive advocacy, build an ecosystem of innovation, and address critical challenges such as supply chain resilience and regulatory efficiencies. But no single organization can do this alone—it is the collective effort of the entire ecosystem that will enable India to move beyond being a cost-efficient outsourcing hub to a strategic global partner for cutting-edge R&D and biopharmaceutical manufacturing.”

Manni Kantipudi, CEO and Whole time Director, Aragen Life Sciences, added, "To compete at a global level, Indian CRDMOs must not only scale capabilities in new modalities like ADCs, cell & gene therapies, and RNA therapeutics but also work together to build a resilient supply chain and streamline regulatory pathways. IPSO is committed to driving this change by working closely with stakeholders to improve access to capital, accelerate talent development, and champion policy initiatives that make India an even more attractive destination for pharmaceutical R&D and manufacturing. As an industry, we must come together to shape the future of Indian life sciences and secure our place at the forefront of global innovation.”

Vikash Agarwalla, Managing Director and Partner, BCG, says, “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—provide the springboard to becoming a dominant player in the global CRDMO market. However, unlocking this full potential will require a 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.”

Smruthi Suryaprakash, Partner, BCG, adds, “The global pharmaceutical landscape is evolving, and India has the potential to play a transformative role in shaping the future of drug discovery and advanced manufacturing. As the industry moves up the tech curve to biologics, gene therapies, and next-generation modalities, Indian CRDMOs must aggressively expand their capabilities in these high-growth areas. By addressing regulatory bottlenecks, fostering cutting-edge R&D collaborations, and scaling talent development, India can emerge as a leader not just in small molecules but in next-gen technologies. The time to act is now - building a world-class CRDMO ecosystem will be crucial to India’s ambition of becoming a global life sciences hub."

To unlock India's CRDMO potential, the report highlights five key imperatives: accelerating talent development through industry-ready curricula and upskilling initiatives, streamlining policies with a CRDMO-focused regulatory framework, strengthening the supplier ecosystem by incentivizing local manufacturers and establishing Innovation Parks, expanding capital access by designating CRDMO as a sunrise sector and enhancing sustainability through green practices and adherence to global ESG benchmarks.