India's CRDMO Sector Poised to Double by 2028 Amidst Global Pharmaceutical Shift

India's CRDMO industry is set to double its market size by 2028, driven by increasing pharmaceutical outsourcing and supportive regulations. Global companies are favoring India for drug development and manufacturing due to cost advantages and reliable supply chains, as geopolitical factors shift supply routes.

India's Contract Research, Development, and Manufacturing Organization (CRDMO) sector is on the brink of monumental growth. According to a report by Macquarie Equity Research, the industry is projected to expand from approximately USD 7 billion to USD 14 billion by 2028. This robust growth is driven by a 14 percent compound annual growth rate (CAGR), fueled by the rising wave of pharmaceutical outsourcing and a supportive regulatory environment.

The analysis elaborates that the Indian CRDMO industry is well positioned to benefit further from regulatory tailwinds, notably the US Biosecure Act, which could accelerate growth rates to high-teens CAGR. CRDMOs offer critical services to pharmaceutical and biotechnology companies, covering the wide spectrum of drug development and manufacturing processes.

Further insights reveal that India stands at a pivotal juncture, with the CRDMO sector capitalizing on drug pricing pressures and evolving geopolitical dynamics. The nation's appeal as a cost-effective and dependable partner in drug manufacturing has turned it into a sought-after destination for small-molecule drug production. Additional regulatory dynamics like the US Biosecure Act could potentially propel this sector to reach USD 22 billion by 2030, as companies seek to diversify supply chains away from China.

(With inputs from agencies.)