Strategic resilience: Indian CDMOs redefine global pharma

FOR decades, India's pharmaceutical sector was defined by its role as the world's reliable manufacturer of low-cost medicines.

- Khushbu Jain

The country became synonymous with the Contract Manufacturing Organization (CMO) model, and more famously as the pharmacy of the world, supplying affordable generics and APIs to global markets. That foundation remains vital, but it is no longer sufficient.

The Indian pharma sector is now in the midst of reinvention: first moving into Contract Development and Manufacturing Organizations (CDMOs) that combine chemistry with formulation and development expertise, and now selectively advancing to the more integrated Contract Research, Development, and Manufacturing Organization (CRDMO) model.

This is not a cosmetic upgrade - it is reshaping India's scale, scope, and positioning in the global pharma value chain. What was once a “low-cost supplier” narrative is now transforming into a story of capability, innovation, and strategic indispensability.

According to Frost & Sullivan, India’s CDMO market, valued at around US$ 6 billion in 2024, is projected to nearly double by 2029. While today, this represents less than five per cent of the global market, a market dominated by the US, European, and Chinese companies, the cumulative growth rate is forecasted to be 1.6 times of the global market over the same period. The pace of expansion is impossible to ignore.

Solid fundamentals driving growth

India’s ascent in contract manufacturing rests on foundations that cannot be replicated.

Small-molecule leadership:

The country continues to dominate the global supply of APIs and formulations, leveraging decades of process chemistry expertise. This backbone allows CDMOs to expand into higher-value services without abandoning the volumes that made them indispensable.

Cost competitiveness: