Contract Manufacturing Booming In India; To reach USD 14 Bn By 2028: Macquarie Report

New Delhi, Feb 20 (KNN) A recent report from Macquarie Equity Research forecasts significant growth in India's Contract Research, Development, and Manufacturing Organisation (CRDMO) industry, projecting its market value to reach approximately USD 14 billion by 2028, doubling from its current size of USD 7 billion.

The sector is expected to maintain a robust compound annual growth rate (CAGR) of 14 percent, driven by increased pharmaceutical outsourcing and favourable regulatory conditions.

The analysis suggests that regulatory initiatives, particularly the US Biosecure Act, could potentially accelerate this growth trajectory into the high teens, pushing the industry's value to USD 22 billion by 2030.

This growth is particularly significant as global pharmaceutical companies seek to diversify their supply chains and reduce dependence on Chinese manufacturing.

In the broader context, the Asia-Pacific pharmaceutical CDMO sector, valued at over USD 50 billion in 2023, continues to expand, with India emerging as an increasingly attractive alternative to China.

Indian CRDMOs offer substantial cost advantages, operating at 30-40% lower costs compared to their Western counterparts, while maintaining high regulatory compliance standards with approvals from key agencies such as the USFDA and EMA.

India's strengthening position in the global pharmaceutical supply chain is further bolstered by its expertise in Active Pharmaceutical Ingredients (APIs), Highly Potent APIs (HPAPIs), and specialty chemicals.

The country's CRDMO sector stands at an inflection point, benefiting from multiple factors including global drug pricing pressures, geopolitical considerations, and an increasing trend toward pharmaceutical outsourcing.

The report emphasises that CRDMOs, which provide comprehensive services to pharmaceutical and biotechnology companies throughout the drug development and manufacturing process, are well-positioned to capitalise on these favourable market conditions.

With its strong regulatory track record, cost advantages, and growing global demand for outsourced pharmaceutical manufacturing, India's CRDMO sector appears poised for sustained expansion in the coming years.

(KNN Bureau)