India's CRDMO Sector Poised for Major Expansion by 2035

India's CRDMO sector, projected to hit $22-25 billion by 2035, is rapidly expanding due to cost advantages and quick startup times. A report highlights opportunities from global supply chain shifts with rising demand for advanced therapies, while addressing challenges like talent expansion and regulatory hurdles.

The Indian CRDMO sector is forecasted to reach between USD 22 billion and USD 25 billion by 2035, per a joint report by the Boston Consulting Group and Innovative Pharmaceutical Services Organization. The sector is growing at a 15% CAGR, surpassing global trends due to India's cost efficiencies and quicker project initiation times.

Western pharmaceutical companies are exploring alternative locations, while global supply chain shifts offer a USD 10 billion opportunity for Indian CRDMOs. Emerging modalities, including DNA, RNA therapies, and antibody drug conjugates, are experiencing annual growth rates of 25-35%, presenting India with a unique chance to lead the innovation wave.

Supported by over Rs 25,000 crore in government funding, India's biotech and pharmaceutical sector is advancing towards self-sufficiency. Holding a 2-3% slice of the USD 140-145 billion global CRDMO market, India is poised to elevate its status in this arena.

India is increasing its attractiveness as an outsourcing hub, driven by efforts to mitigate supply chain risks, alongside pricing pressures and policies like the Inflation Reduction Act. The demand for specialized CRDMO services, particularly for advanced modalities, is on the rise.

Despite the positive outlook, the sector faces hurdles. A 6-7x increase in talent by 2035 is necessary, along with swifter regulatory processes and a robust tier 1 supplier network to decrease dependency on imports. The requisite 4-5x investment growth is challenged by limited funding and high capital expenses, while ESG adherence lags behind global competitors.

Peter Bains, CEO Designate of Syngene International Ltd, highlights the transformative potential of India's CRDMO sector, stressing the need for collaborative efforts among stakeholders to harness global biopharma and life sciences outsourcing opportunities.