India Contract Development and Manufacturing (CDMO) Market Size
The India contract development and manufacturing (CDMO) market size reached US$ 16.27 Billion in 2024 and is expected to reach US$ 31.23 Billion by 2033, growing at a CAGR of 7.6% during the forecast period 2025-2033.
India Contract Development and Manufacturing (CDMO) Market Overview
The contract development and manufacturing organization (CDMO) market in India is experiencing rapid growth, driven by the country’s expanding pharmaceutical industry, increasing outsourcing trends in drug development and manufacturing, and an enhanced regulatory environment. India is increasingly being seen as a key player in the CDMO market, largely due to its established expertise in generic drug production, competitive pricing, skilled workforce, and cost-effective services for pharmaceutical companies worldwide.
The market is poised for significant expansion in the coming years, supported by strong demand for both small molecule and biologic drugs, advancements in contract manufacturing services, and a strong push towards more efficient, scalable production capacities. Indian CDMOs are becoming critical partners for both domestic and international pharmaceutical companies looking to accelerate time-to-market while reducing manufacturing costs and regulatory complexity.
Executive Summary
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India Contract Development and Manufacturing (CDMO) Market Dynamics: Drivers & Restraints
High-quality generic drug production is significantly driving the India Contract Development and Manufacturing (CDMO) market growth
The rising global demand for affordable healthcare solutions, especially in developed markets like the U.S. and Europe, is pushing pharmaceutical companies to look for cost-effective manufacturing alternatives. As patents on blockbuster drugs expire, demand for generic versions which offer the same therapeutic benefits but at a much lower cost skyrockets. India, being the world’s largest producer of generic drugs, accounting for 20% of the worldwide supply by volume and supplying about 60% of the global vaccination demand, is well-positioned to meet this demand through its robust CDMO infrastructure.
For instance, Cipla, one of India’s leading pharmaceutical companies, Cipla has produced 200+ generics and complex APIs and has been able to successfully manufacture many generic versions of major drugs, such as AIDS medications, respiratory, and cancer treatments, at a fraction of the cost of branded alternatives. This has made Cipla a key player in generic drug supply and a preferred partner for international pharmaceutical companies.
As patents for many blockbuster drugs expire, there is a substantial opportunity for Indian CDMOs to step in and produce generic versions. This trend, especially in therapeutic areas like oncology, cardiology, and diabetes, has created a massive demand for generics worldwide. Indian CDMOs, with their established production capabilities, can rapidly scale up manufacturing to supply global markets, increasing their market share.
For instance, the generic version of Glivec (imatinib), a cancer drug by Novartis, is one of the most notable examples where Indian CDMOs, such as Natco Pharma, capitalized on the expiration of patents and offered affordable alternatives to millions of cancer patients across the globe. This growth is driven by the expiration of patents on branded drugs, which opens up significant opportunities for generics production and exports, reinforcing India’s leadership in the global pharmaceutical industry.
Regulatory compliance and complexities are hampering the market growth
Regulatory compliance and complexities are significant challenges that can hamper the growth of the India contract development and manufacturing organization (CDMO) market. While India has made substantial strides in aligning with global regulatory standards, the complexity of regulations, combined with stringent requirements for international certifications, creates several obstacles for CDMOs in the country.
Indian CDMOs aiming to serve global markets must comply with regulations set by international authorities like the U.S. FDA, European Medicines Agency (EMA), and World Health Organization (WHO). The process to secure approval from these agencies can be time-consuming and complex, requiring multiple rounds of inspections, documentation, and adherence to strict Good Manufacturing Practices (GMP). This delay in approval can result in missed market opportunities, especially in highly competitive sectors like generics, biologics, and biosimilars, where time-to-market is critical. Failure to obtain timely approvals can lead to lost contracts, production halts, and financial losses.
India Contract Development and Manufacturing (CDMO) Market, Segment Analysis
The India contract development and manufacturing (CDMO) market is segmented based on service type, scale of operation, and end-user.
The contract manufacturing services from service type segment holds 53.78% in the India contract development and manufacturing (CDMO) market
India's cost-effectiveness is a major reason why contract manufacturing services are highly in demand. Indian CDMOs offer high-quality manufacturing at lower costs, driven by lower labor and operational expenses compared to Western markets. This makes India a preferred destination for pharmaceutical companies looking to outsource their manufacturing needs while maintaining a focus on cost reduction.
For instance, Indian companies like Aurobindo Pharma and Lupin are leaders in the contract manufacturing space, providing services to major international pharmaceutical companies. Aurobindo, for instance, produces a variety of generic formulations and active pharmaceutical ingredients (APIs) for global markets, at significantly lower costs.
India is renowned as the world leader in generic drug manufacturing, and the contract manufacturing services segment heavily capitalizes on this expertise. Indian CDMOs have the capabilities to manufacture high-quality generic drugs, which are in high demand in both developed and developing markets. As patents for branded drugs expire, Indian CDMOs offer a reliable and cost-effective solution for the production of generic medicines.
For instance, Dr. Reddy’s Laboratories, one of India's largest pharmaceutical companies, excels in providing contract manufacturing services for generics. It has partnerships with leading global pharmaceutical companies to manufacture generic formulations and biologics in large quantities, helping these companies lower their production costs while maintaining high-quality standards.
India Contract Development and Manufacturing (CDMO) Market Top Companies
Top companies in the India contract development and manufacturing (CDMO) market include Aurobindo Pharma Limited, Dr. Reddy’s Laboratories Ltd., Sun Pharmaceutical Industries Ltd., Lupin Limited, Cipla, NATCO Pharma Limited, Hetero Labs Limited, Cadila Pharmaceuticals, Biocon, Intas Pharmaceuticals Ltd., and others.
India Contract Development and Manufacturing (CDMO) Market Scope
| Metrics | Details | |
| CAGR | 7.6% | |
| Market Size Available for Years | 2022-2033 | |
| Estimation Forecast Period | 2025-2033 | |
| Revenue Units | Value (US$ Bn) | |
| Segments Covered | Service Type | Contract Development Services, Contract Manufacturing Services, and Contract Packaging Services |
| Scale of Operation | Preclinical, Clinical (Phase I, II, III), and Commercial Manufacturing | |
| End-User | Pharmaceutical Companies, Biotechnology Companies, and Academic and Research Institutions | |
The India contract development and manufacturing (CDMO) market report delivers a detailed analysis with 39 key tables, more than 26 visually impactful figures, and 138 pages of expert insights, providing a complete view of the market landscape.
