Global CRDMO Work Distribution in India Expected to Rise up to 10% by 2033

The global CRDMO (Contract Research Development & Manufacturing Organisation) industry is about to witness a re-distribution of outsourcing work across several Asian countries, with India and Korea emerging as new powerhouses by 2033. 

 

At the recent Scale-Up Health event by Eight Roads Ventures, McKinsey & Company presented survey findings that showed that global pharmaceutical companies are increasingly considering India as a destination for their outsourcing needs. 

 

As per McKinsey analysis, by 2033, India could potentially account for 8%-10% share of work outsourced to CDMOs globally, an outcome of the recent trend of significant amount of outsourced work shifting from EU/US to Asia. This growth is largely driven by the evolving geopolitical environment with most Indian CRDMOs expecting 20-40% of their new business to stem from these changes. 

 

Conceptualized and championed by Eight Roads Ventures, Scale-Up Health is India’s first platform for healthcare and life sciences entrepreneurs and leaders, which brings together the Indian entrepreneurial ecosystem to drive collaboration, build stronger networks and champion innovation. It aims to spotlight conversations on latest trends, innovations, and technologies that are redefining global healthcare delivery, accessibility and outcomes. This year, the conference explored four disruptive trends for 2025 and beyond. 

 

Dr. Prem Pavoor, Senior Partner, Head of India & India Healthcare Investments at Eight Roads Ventures, said "The evolving geopolitical landscape and impending legislation presents a significant opportunity for the Indian CDMO industry, one that could be truly transformative. We’re already seeing leading Indian biopharmaceutical companies receive more request-for-proposals, especially from US customers. Though these customers maybe adopting a wait-and-watch approach for now, it’s clear that, amidst global uncertainties, they will seek to diversify their outsourcing footprint. This creates a huge opportunity for India, but also a challenge because Indian CDMOs will need to be prepared with the right infrastructure and services to meet this increased demand."

 

Sharing insights from the survey, Anirudh Roy Popli, Partner, McKinsey & Company, said, The biopharma industry is increasingly recognizing the value Indian CDMOs bring to the table. We are seeing increased interest levels across customer segments. However, building trust and long-term, at-scale partnerships takes time. With a strong focus on value and innovation, Indian CDMOs are well-positioned to play a pivotal role in shaping the future of healthcare.”

 

The conference also spotlighted conversations on oncology care, the global surge of anti-obesity drugs and the rising medtech wave. 

 

Industry leaders who spoke at the event offered key observations during the panel discussions, including:

 

• Technology, including AI, digital health, and telemedicine, has the potential to augment and transform cancer care by improving diagnosis, treatment selection, monitoring, and patient access. 

• The future of cancer care may involve small curative treatments for specific patient populations, but the focus should be on earlier diagnosis and screening to achieve better outcomes. 

• GLP-1 drugs are creating a lot of buzz globally as a new class of diabetes and weight loss medication. The annual revenue for the GLP-1 drug class is projected to exceed $100-150 billion by 2030. 

• There is potential for India to participate in the global surge of anti-obesity medications as a market as well as through research, clinical trials, and manufacturing. 

• The medtech market, currently at $10 billion, has the potential for significant growth and value creation. 

• The biggest challenge for the medtech industry in India is developing a strong supply chain ecosystem and overcoming talent shortages in research and development 

• As the CDMO industry in India prepares to make the best out of emerging geopolitical circumstances, enhancing customer experience, widening the array of offerings to include emerging new technologies and strengthening proactive scientific problem-solving with the innovators should be the key areas of focus. 

• Though India has a reasonably large talent pool to cater to small molecules, there is a need for specialized skills in the large molecule space as well. Companies could explore investing in nurturing talent and bridging the skill gap.