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VMPL
New Delhi [India], May 13: India is poised to lead the global biopharma outsourcing landscape, leveraging recent regulatory shifts to cement its status as the most attractive destination for CDMO services. According to a new report by LoEstro Advisors, the country’s Contract Development and Manufacturing Organisation (CDMO) industry is projected to reach USD 14 billion by FY28, growing at a rapid 14% CAGR. This positions India not just as a major player, but also as a global front-runner in drug development and manufacturing services.
The report highlights India’s unique strengths. These include significant cost advantages, a skilled scientific workforce, and a strong regulatory track record. The research says India is home to 585 FDA-approved plants, second only to the United States. Every year, over 200,000 pharmacy graduates join the workforce. The country also offers affordable land and labour, allowing companies to scale faster and at lower costs.
Commenting on the findings, Rakesh Gupta, Managing Partner at LoEstro Advisors, said, “At LoEstro Advisors, we are committed to delivering actionable insights to empower decision-makers in the pharmaceutical and healthcare sectors. We trust this report will serve as a valuable resource for executives, investors, and industry leaders aiming to capitalize on the opportunities within the CDMO space.”
Crucially, geopolitical and policy shifts are influencing global outsourcing strategies. In the United States, the proposed BIOSECURE Act, which seeks to limit federal contracts with firms that partner with certain Chinese biotech companies, has already started reshaping outsourcing patterns. While the legislation is still under debate, it has gained bipartisan support and is seen as likely to pass. Anticipating this, several US-based companies have begun actively exploring alternatives outside of China. India, with its strong regulatory reputation and manufacturing capacity, is emerging as a natural and strategic alternative.
The CDMO industry is also shifting toward next-generation therapies, including cell and gene treatments, mRNA platforms, and antibody-drug conjugates (ADCS). These require advanced capabilities and high specialisation. Indian CDMOS are responding by investing in cutting-edge infrastructure, digital technologies, and integrated service models.
With increasing geopolitical uncertainties, ESG regulations, and volatile costs in traditional markets, global pharma companies are rethinking their supply chains. Many are moving operations closer to home or to trusted partners. India, with its proven reliability and regulatory compliance, is emerging as a stable, strategic choice.
PE Platforms like Cohance, Viyash, and Sekhmet are consolidating the Indian CDMO space. This wave of integration is reshaping the industry. For mid-sized players, it presents both a challenge and a golden opportunity to scale, specialise, and stand out.
As global pharma companies rethink their supply chains amid rising costs and regulatory uncertainties, India is becoming central to the conversation. What was once a value proposition built on affordability is now driven by capability, credibility, and a clear strategic edge.
For more information visit: https://www.loestro.com/
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