62 TWENTYFOURSEVENBIOPHARMA Issue 1 / March 2025 BCG-IPSO REPORT 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% CAGR, outpacing global industry growth, fueled by its cost advantage over the West and 90% 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% annual growth, providing India with an opportunity to leapfrog in innovation. - Indian biotech and pharma innovation is accelerating, backed by over INR 25,000 crore in government funding to foster a self-sufficient, local innovation-driven ecosystem. India holds a 2-3% share of the $140-145 billion global CRDMO market but has the potential to become a global leader. Four key tailwinds are driving this growth: the push to de-risk supply chains is making India a preferred outsourcing destination; pricing pressures and policies like the Inflation Reduction Act (IRA) are accelerating offshoring; rising demand for advanced modalities like ADCs, gene therapy, and RNA therapeutics is boosting specialized CRDMO services; and growing investments in R&D and infrastructure are strengthening India’s innovation ecosystem. India’s CRDMO sector must overcome five key challenges to sustain growth. It needs a 6-7x talent expansion by 2035, faster regulatory approvals and a stronger tier 1 supplier base to reduce import reliance. Limited funding and high capital costs
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