India CMO Market Size (2024 - 2029)

India CMO Market Analysis

The India CMO Market size is estimated at USD 22.51 billion in 2024, and is expected to reach USD 44.63 billion by 2029, growing at a CAGR of 14.67% during the forecast period (2024-2029).

The rise in demand for injectable drugs, especially in cancer research, will upwardly trend the Indian pharmaceutical contract manufacturing market. Injectable drugs offer higher returns as compared to other drug formulation types. Therefore, higher ROI and therapeutic efficiency are expected to fuel the growth of the injectable formulation segment in the country.

• Over the past few decades, India has taken a significant leap in pharmaceutical production, including contract manufacturing. As per Indian Drug Manufacturers' Association, the pharma CMO industry provides a significant opportunity for small and medium enterprises.
• The pharmaceutical and vaccine industries are both very vital to India. Globally speaking, it is the biggest supplier of generic medications. Around 60% of the world's vaccinations come from India, contributing 20% of the supplies globally. India is the third-largest country in the world in both volume and value. OTC drugs, Generics, APIs, Vaccines, Biosimilars, and Custom Research Manufacturing are significant subsectors of the Indian pharmaceutical business (CRM).
• The scale-up of drug synthesis and late clinical trials have become a suitable protocol in the country. Along with it, DTAB (Drug Technical Advisory Board) has also agreed to grant a waiver to the late-stage (Phase III) studies of certain drugs in the country, which are from the US and Europe-regulated markets. These incentive step translates into enormous cost savings for pharmaceutical companies, thereby increasing their focus on India.
• The Indian government has established several programs to support the pharmaceutical sector. The Strengthening of Pharmaceutical Industry (SPI) initiative, with a total financial investment of INR 500 crore (USD 64.5 million), focuses on enhancing the current infrastructure facilities. The foreign direct investment (FDI) inflows in the Indian drugs and pharmaceuticals sector reached USD 1,414 million between FY 2021-22.
• Pharmaceuticals, crucial key starting materials (KSMs), medical devices, bulk drug parks, and other industries have production-linked incentive (PLI) programmes to support manufacturers. The Indian government wants to boost output and investment in the country's pharmaceutical industry through the PLI scheme. In the six years from 2022-2027, the scheme is anticipated to produce an additional sale of INR 2,94,000 crore (USD 37.09 billion).
• Moreover, the country is a significant exporter of pharmaceutical solutions. For instance, the United States relies on India to import services and establish its plants in the country. A substantial 40% lower cost of operation and production is why multinational companies consider India for their outsourcing requirements.
• The main factors most likely to impede market expansion during the projected period include the existence of stringent government restrictions and a decrease in the approval of numerous small molecules and biologics in specific regions of the nation. Additionally, the lack of modern technology in small-scale CDMOs increases the likelihood of process errors, the potential for poor quality, and the difficulties associated with rising prices, all of which are predicted to restrain market expansion.
• The COVID-19 epidemic has generally been good for contract manufacturing services. In the clinical trial manufacturing sector, where mega- and small-cap businesses use a sizable drug pipeline and partners to progress their pipelines, there are numerous prospects for CMOs. The pandemic has also increased big pharma's internal capacity as some have outsourced some of their current goods. There has also been an impact of the Russia-Ukraine war on the overall packaging ecosystem.

India CMO Industry Segmentation

The market study tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyzes the overall impact of COVID-19 on the ecosystem.

The India Contract Manufacturing Organization (CMO) Market is segmented by Service Type (API and Intermediates, Finished Dose). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.