India CDMO Market, By Service Type (API (Active Pharmaceutical Ingredients) Manufacturing, Finished Product Manufacturing, Packaging Services, Clinical Research Services (CRO), Laboratory Services), By Application (Generic Drugs, Branded Drugs, Biologics Drugs, Vaccines), By End User (Pharmaceutical Companies, Biotechnology Companies, Research Institutions), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

India CDMO Market was valued at USD 17.51 Billion in 2024 and is expected to reach USD 37.71 Billion by 2030 with a CAGR of 13.60% during the forecast period.

India's Contract Development and Manufacturing Organization (CDMO) sector has emerged as a cornerstone of the global pharmaceutical industry, driven by robust growth and strategic advantages. The country offers a highly competitive manufacturing environment, characterized by cost efficiency, a deep reservoir of skilled scientific talent, and adherence to stringent international regulatory standards. These attributes position India as an indispensable outsourcing hub for leading global pharmaceutical firms.

The sector's trajectory is strongly supported by India's growing expertise in biologics, including vaccines and advanced therapies, as well as government policies that actively foster innovation and infrastructure development. These dynamics solidify India’s standing as a premier destination for pharmaceutical outsourcing, making it a critical partner in the global drug supply chain.

Key Market Drivers

Skilled Workforce and Scientific Expertise

India’s skilled workforce and scientific expertise are central to the growth of the Contract Development and Manufacturing Organization (CDMO) market. The country produces a steady flow of graduates and postgraduates in pharmacy, biotechnology, chemistry, and chemical engineering, ensuring a constant supply of professionals for pharmaceutical research, development, and manufacturing. In 2022, engineering and technology led Ph.D. enrollments with over 52,000 students, followed by science disciplines with 45,000 and social sciences with 26,000.

The pharmaceutical sector contributes 1.72% to India’s GDP and employs more than 2.7 million people. Indian scientists are recognized for their work in small molecules, biologics, biosimilars, and specialty drugs. Their expertise spans formulation, process optimization, analytical testing, and commercial scale-up. Compliance with U.S. FDA, EMA, and other global standards enhances international confidence in Indian CDMOs.

Cost advantages are significant, with manufacturing costs nearly 33% lower than in the U.S., labor 50–55% cheaper than in Western countries, and facility setup costs 40% lower. Combined with technical expertise and scalability, India holds a strong position in the global CDMO market.

Increasing Demand for Biologics and Specialty Drugs

Biologics and specialty drugs are driving growth in the CDMO market. Chronic conditions in India include diabetes (62.47 per 1,000), hypertension (159.46 per 1,000), ischemic heart disease (37.00 per 1,000), stroke (1.54 per 1,000), and 2.5 million cancer cases. Indian CDMOs are expanding capacity for monoclonal antibodies, vaccines, and gene therapies while offering cost-effective alternatives to developed markets.

Biosimilars are another growth area, supported by expertise in efficient manufacturing and compliance. India’s strong record in vaccine production, proven during COVID-19, has further strengthened biologics capabilities. Partnerships with global firms are increasing access to advanced technologies and global markets.

Rising Global Healthcare Expenditure

Rising healthcare spending worldwide is creating opportunities for Indian CDMOs. Government Health Expenditure in India rose from 1.13% of GDP in 2014–15 to 1.84% in 2021–22, with its share of General Government Expenditure growing from 3.94% to 6.12%.

Aging populations and rising chronic diseases globally are driving demand for complex therapies. Developed countries seeking cost efficiency are outsourcing more production to India, where CDMOs provide generics, biologics, and specialty drugs at lower costs. This makes them key players in reducing healthcare spending while meeting global demand.

Indian CDMOs are also investing in biologics and preventive care segments, including vaccines, to support universal health coverage initiatives. Their expertise in affordable and large-scale production ensures growing relevance in global pharmaceutical supply chains.

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Key Market Challenges

Limited Infrastructure for Advanced Therapies

While Indian CDMOs excel in small-molecule production and generics manufacturing, infrastructure for advanced therapies such as biologics, cell and gene therapies, and specialty drugs remains underdeveloped in many facilities. This limitation restricts their ability to compete in high-growth, high-margin segments of the global pharmaceutical market.

Developing capabilities for biologics and advanced therapies requires substantial capital investment in specialized equipment, cleanroom facilities, and talent acquisition. Although the Indian workforce is skilled, advanced therapy production requires niche expertise, which is still in the early stages of development. Many CDMOs remain focused on traditional manufacturing segments due to lower risk and immediate revenue potential, limiting diversification into future-oriented technologies.

Without significant investment in infrastructure and expertise, Indian CDMOs risk being excluded from lucrative opportunities in the biologics and specialty drug markets, which are projected to dominate the future of global pharmaceuticals.

Intense Global Competition and Price Pressure

Indian CDMOs face stiff competition from other low-cost manufacturing hubs such as China, Southeast Asia, and Eastern Europe. Additionally, the global outsourcing landscape is becoming increasingly competitive, with clients demanding lower costs while expecting superior quality and faster turnaround times.

China’s aggressive investment in pharmaceutical infrastructure, biologics capabilities, and regulatory reforms has made it a formidable competitor in the CDMO market. Over-reliance on cost advantages as a competitive strategy leads to price wars, which reduce profit margins and hinder the ability to invest in R&D and innovation. Many Indian CDMOs depend heavily on a limited number of large clients, making them vulnerable to shifts in outsourcing strategies or price renegotiations.

Price pressures and intense competition can erode profitability and stifle long-term growth. Without differentiation through innovation, advanced offerings, or strategic partnerships, Indian CDMOs risk losing market share to more agile competitors.

Key Market Trends

Integration of Digital and Smart Manufacturing Technologies

The adoption of advanced digital technologies is transforming the pharmaceutical manufacturing landscape, with Indian CDMOs increasingly investing in smart manufacturing to enhance efficiency, scalability, and quality.

The integration of IoT (Internet of Things), AI (Artificial Intelligence), and ML (Machine Learning) enables predictive analytics, real-time monitoring, and automated decision-making in manufacturing processes. Advanced analytics and machine learning algorithms improve process optimization, ensuring consistent quality while minimizing errors and waste. Transitioning from traditional batch processing to continuous manufacturing allows Indian CDMOs to produce drugs more efficiently and meet the demands for faster time-to-market.

By embracing smart manufacturing, Indian CDMOs can position themselves as innovation leaders, attract clients seeking technologically advanced partners, and improve operational efficiency, giving them a competitive edge in the global market.

Rise of Customization and Personalized Medicine

The global pharmaceutical market is shifting towards personalized medicine, focusing on tailored treatments based on individual genetic, molecular, or clinical profiles. This trend is creating new opportunities for Indian CDMOs to offer customized solutions.

Personalized medicine requires the production of small, customized batches of drugs, a departure from traditional large-scale manufacturing. Indian CDMOs are increasingly developing capabilities to manufacture cell therapies, gene therapies, and precision oncology drugs. The rise of treatments for rare diseases aligns with this trend, with Indian CDMOs expanding their expertise in this high-value, specialized market.

By building capabilities in personalized medicine, Indian CDMOs can access higher-margin segments and differentiate themselves from competitors reliant on traditional manufacturing.

Segmental Insights

Service Type Insights

Based on the category of Service Type, the Active Pharmaceutical Ingredient (API) Manufacturing segment emerged as the dominant in the India CDMO Market in 2024. India has long been recognized as the "Pharmacy of the World," with a robust infrastructure for manufacturing APIs. The country accounts for a significant share of the global API supply, catering to markets in the U.S., Europe, and emerging economies. Indian CDMOs leverage economies of scale and low production costs to offer competitively priced APIs, making them preferred outsourcing partners for global pharmaceutical companies. The presence of state-of-the-art API manufacturing facilities, many of which are certified by international regulatory bodies such as the U.S. FDA and EMA, enhances India’s credibility as a reliable API supplier.

The increasing global demand for generic drugs fuels the need for APIs, a segment in which Indian CDMOs excel. The expiration of patents for blockbuster drugs has further boosted opportunities for API manufacturing in India. Indian CDMOs have a proven track record in producing high-quality generic APIs at scale, making them key players in the global generic drug market. Pharmaceutical companies in developed markets face cost pressures, driving them to outsource API production to cost-efficient locations like India. Indian CDMOs are increasingly adopting vertical integration strategies, encompassing API production, formulation, and finished product manufacturing.

This reduces dependency on external suppliers, particularly for key starting materials (KSMs) and intermediates. With a focus on backward integration, Indian CDMOs have mitigated risks related to supply chain disruptions, especially in light of global challenges like the COVID-19 pandemic. Vertical integration enables end-to-end control over the pharmaceutical production process, increasing efficiency and reducing time-to-market for new drugs. These factors are expected to drive the growth of this segment.

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Regional Insights

South India emerged as the dominant in the India CDMO Market in 2024, holding the largest market share in terms of value. South India is home to key pharmaceutical clusters, particularly in cities like Hyderabad, Bangalore, and Chennai, which are renowned for their advanced infrastructure and global connectivity. These hubs have positioned the region as a focal point for pharmaceutical research, manufacturing, and export.

Known as the bulk drug capital of India, Hyderabad houses numerous API manufacturing units and CDMOs, contributing significantly to the global API supply.  With its strong focus on biotechnology and innovation, Bangalore supports CDMOs specializing in biologics and advanced therapies. Chennai’s proximity to ports and well-developed logistics infrastructure facilitates smooth export operations for pharmaceutical products.

The region benefits from a large pool of skilled professionals, particularly in pharmaceutical sciences, biotechnology, and chemical engineering, supported by prominent educational institutions. Institutions such as the Indian Institute of Technology (IIT) Madras and the National Institute of Pharmaceutical Education and Research (NIPER) in Hyderabad contribute to a highly skilled talent pipeline. Partnerships between academic institutions and CDMOs foster innovation, particularly in drug discovery and formulation development.

Recent Developments

• In October 2025, Eli Lilly and Company announced plans to invest over $1 billion in India over the next several years to expand contract manufacturing capabilities through partnerships with local pharmaceutical companies. The investment aims to boost production of key treatments for obesity (including Mounjaro), diabetes, Alzheimer's disease, cancer, and autoimmune disorders. The company also plans to establish a new manufacturing and quality facility in Hyderabad, Telangana, with recruitment beginning immediately for roles including engineers, chemists, analytical scientists, and quality control professionals.
• In August 2025, the Indian government approved the INR 1 lakh crore (USD 12 billion) Research, Development, and Innovation (RDI) scheme. This initiative aims to provide long-term, low-interest financing to incentivize private sector R&D in strategic sectors, including pharmaceuticals, further bolstering the CDMO industry's innovation capabilities.
• In June 2025, Zydus Lifesciences announced its entry into the global biologics CDMO business through the acquisition of Agenus Inc.'s two U.S.-based biologics manufacturing facilities in Emeryville and Berkeley, California, for up to $125 million. The acquisition included an upfront payment of $75 million with an additional $50 million contingent payment over three years. Zydus gained exclusive manufacturing rights for Agenus' Phase-3 ready immuno-oncology products Botensilimab and Balstilimab.
• Indian multinational pharmaceutical company Divi’s Laboratories, a leading API supplier, is developing a three-unit project within a 500-acre manufacturing facility in Kakinada, Andhra Pradesh. With Phase I spanning 200 acres set to commence commercial operations in January 2025, the company is strengthening its position in intermediate and custom synthesis solutions.
• In July 2024, Akums, India’s leading pharmaceutical contract development and manufacturing organization (CDMO), is preparing to raise INR 680 crore in fresh capital as part of an initial public offering (IPO) valued at approximately INR 1,750 crore, including an offer for sale, according to market sources cited by ET Pharma.
• Aurigene Pharmaceutical Services, a subsidiary of Indian pharmaceutical giant Dr. Reddy’s, has established a biologics facility in Hyderabad’s Genome Valley, Telangana. Operational since June 2024, the facility specializes in the production of therapeutic proteins, antibodies, and viral vectors, offering integrated services from clinical research to commercial manufacturing.
• In August 2024, Akums Drugs and Pharmaceuticals, India’s largest Contract Development and Manufacturing Organization (CDMO), has submitted two dossiers in the European Union (EU) as part of its strategic efforts to expand its portfolio, with a third dossier currently in development. This move to penetrate the European market comes amid significant shifts in the global pharmaceutical landscape. With the U.S. market facing volatility and margin pressures, Europe presents an appealing alternative due to its market stability, substantial size, and harmonized regulatory framework.
• On January 17, 2024, it was reported that Aragen Life Sciences, a global Contract Research, Development, and Manufacturing Organization (CRDMO), is investing INR 20 billion (USD 230.5 million) in Telangana to enhance its capabilities in drug discovery, development, and manufacturing.
• Hyderabad-based multinational pharmaceutical and biotechnology firm Laurus Labs is undertaking an INR 9.9 billion (USD 114.1 million) expansion, transitioning from API research to antiretrovirals and intermediates. Currently, 60% of its revenue is derived from the U.S. and European markets. Another Telangana-based pharmaceutical company, Jubilant Pharmova, has committed USD 370 million to doubling its sterile injectable capacity in Spokane and Montreal, reinforcing its growth trajectory in North America.

Key Market Players

• Cipla Limited
• Divi's Laboratories Limited
• Dr. Reddy’s Laboratories Ltd
• Piramal Pharma Limited
• Akums Drugs and Pharmaceuticals Ltd.
• Sunwin Healthcare Private Limited.
• Prakruti Life Science Pvt. Ltd

Report Scope:

In this report, the India CDMO Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• India CDMO Market, By Service Type:

o   API (Active Pharmaceutical Ingredients) Manufacturing

o   Finished Product Manufacturing

o   Packaging Services

o   Clinical Research Services (CRO)

o   Laboratory Services

• India CDMO Market, By Application:

o   Generic Drugs

o   Branded Drugs

o   Biologics Drugs

o   Vaccines

• India CDMO Market, By End User:

o   Pharmaceutical Companies

o   Biotechnology Companies

o   Research Institutions

• India CDMO Market, By Region:

o   North India

o   South India

o   East India

o   West India

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India CDMO Market.

Available Customizations:

 India CDMO market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).