India CRDMO Sector Could Grow to $25 Billion by 2035, Report Says
The report from Boston Consulting Group and Innovative Pharmaceutical Services Organization said the market in India is currently expanding at a 15% compound annual growth rate.
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A strong foundation in small-molecule capabilities, emerging expertise in biologics, and cost advantages that are viewed as sustainable are the highlights of a new report that suggests the contract research, development, and manufacturing organization (CRDMO) sector in India has the potential to grow to between $22 billion and $25 billion by the year 2035 (1).
The report, Unleashing the Tiger: Indian CRDMO Sector 2025, is authored by Boston Consulting Group (BCG) and Innovative Pharmaceutical Services Organization (IPSO), a new association formed by 11 Indian CRDMOs, and was released Feb. 25, 2025 at the BioAsia 2025 Summit in Hyderabad, India (1). It estimates India’s CRDMO sector to be a $3 billion to $3.5 billion industry at the current time, which translates roughly to an expected 15% compound annual growth rate in the next 10 years (1,2).
“India’s CRDMO industry is at the beginning of its ‘Amrit Kaal,’ with many strong tailwinds,” Vikash Agarwalla, managing director and partner at BCG, said in a press release announcing the unveiling of the report. “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.”
The global CRDMO market, according to the report, is a $140 billion to $145 billion business as of 2025, of which India holds a 2% to 3% share (1). However, the report identifies four factors that may make the country a leader in the industry by 2035 or sooner. A desire to de-risk supply chains has made India a preferred outsourcing destination, policies such as the Inflation Reduction Act are having the effect of promoting offshoring, advanced modalities like antibody-drug conjugates (ADCs), gene therapy, and RNA therapeutics are increasing the need for specialized services, and R&D and infrastructure investments are bolstering innovation in India.
"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,” Peter Bains, CEO designate of Syngene International Ltd., said in the release. “Realizing 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, in order to realize the inherent potential.”
To overcome five key challenges outlined in the report, CRDMOs in India must achieve five imperative goals, according to BCG and IPSO: accelerate their talent development, streamline policies through a regulatory framework, offer incentives to local manufacturers to help strengthen the supplier ecosystem, expand access to capital, and continue to observe sustainability practices (1).
"The shift in global pharma outsourcing, the rapid rise of biologics, and India’s expertise in chemistry and process innovation create a once-in-a-generation opportunity,” Manni Kantipudi, CEO and whole-time director of Aragen Life Sciences Ltd., said in the release. “However, to compete at a global level, Indian CRDMOs must not only scale capabilities in new modalities like ADCs, cell and gene therapies, and RNA therapeutics but also work together to build a resilient supply chain and streamline regulatory pathways.”
“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,” Smruthi Suryaprakash, partner at BCG, said. “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."
References
1. Boston Consulting Group. India’s CRDMO Sector Growth Potential at $22–$25 Billion by 2035, Driving Global Pharma Innovation: BCG-IPSO Report. Press Release. Feb. 25, 2025.
2. Agarwalla, V.; Suryaprakash, S.; Mathur, S.; et al. Unleashing the Tiger: Indian CRDMO Sector; Boston Consulting Group + Innovative Pharmaceutical Services Organization, February 2025.
