New Delhi, Feb 20 (KNN) – India’s Contract Research, Development, and Manufacturing Organisation (CRDMO) industry is expected to grow significantly, with its market value projected to reach approximately USD 14 billion by 2028, according to a report by Macquarie Equity Research. The sector, currently valued at USD 7 billion, is forecasted to expand at a compound annual growth rate (CAGR) of 14 percent.
The report highlights increasing pharmaceutical outsourcing and favorable regulatory conditions as key drivers of this growth. Regulatory developments, including the US Biosecure Act, may further accelerate industry expansion, potentially increasing its market value to USD 22 billion by 2030.
As global pharmaceutical companies seek to diversify their supply chains and reduce dependence on Chinese manufacturing, India is emerging as an alternative manufacturing hub. The Asia-Pacific pharmaceutical Contract Development and Manufacturing Organisation (CDMO) sector, valued at over USD 50 billion in 2023, continues to grow, with India playing a growing role in this market.
Indian CRDMOs offer cost advantages, operating at 30-40% lower costs than Western counterparts while adhering to regulatory standards set by agencies such as the US Food and Drug Administration (USFDA) and the European Medicines Agency (EMA). The sector’s growth is supported by India’s expertise in Active Pharmaceutical Ingredients (APIs), Highly Potent APIs (HPAPIs), and specialty chemicals.
The report notes that multiple factors, including global drug pricing pressures, geopolitical shifts, and increasing pharmaceutical outsourcing trends, are contributing to the expansion of India’s CRDMO industry. With a strong regulatory framework, cost efficiencies, and increasing demand for outsourced pharmaceutical manufacturing, the sector is positioned for continued growth in the coming years.
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