Why global pharma companies choose India for GCCs

India’s pharmaceutical industry is globally recognised for its capabilities in research and manufacturing and for its skilled labour. The country’s attractiveness as a destination for Global Capability Centres GCCs) is underpinned by several key factors, including cost-efficiency, a vast talent pool, robust infrastructure, and strong regulatory support.

- Anil Matai

India serves as a key global hub for development, attracting investments of more than $7 billion. Global pharmaceutical companies have established GCCs in India which serve as centres of excellence for drug discovery, formulation development, and healthcare solutions, while also supporting a strong ecosystem by employing talent and increasing the knowledge base.

For instance, Novartis has had a significant footprint in India since 1947, and in the last two decades, it has evolved to be an integral part of the development journey of many breakthrough medicines in various therapeutic areas like cardiovascular, oncology, immunology, neurology, and ophthalmology, amongst others. Similarly, MSD is primed to support the Indian government in protecting every woman through HPV vaccination with nearly 85 per cent of their products being manufactured locally. In India, Novo Nordisk is conducting phase 2-4 clinical trials across major disease areas with over 3,000 enrolled patients. With 37 ongoing trials in various therapy areas, India accounts for 7-8 per cent of Novo Nordisk's global patient pool. As GCCs have evolved to become centres for innovation and research, India has transformed into a hub for new product development for global enterprises. Consequently, over 50 per cent of the world's GCCs are now located in India, driven by factors that provide a competitive edge for businesses aiming to optimise operations and drive innovation.

Cost-efficiency of conducting business

India offers a compelling cost-quality ratio, making it financially advantageous for companies to establish their GCCs in the country. Labour costs in India are significantly lower than those in countries like North America and Europe, enabling companies to reduce operational expenses while maintaining profitability.