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India is emerging as a preferred destination for contract development and manufacturing services: Arushi Jain
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Yash Ved, Mumbai
November 04 , 2026
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India is now emerging as a preferred destination for contract development and manufacturing services. Global drug makers, under pressure to cut costs, shorten development timelines and diversify supply chains, are increasingly looking to India not just for volume, but for value. The result is a steady transformation that is turning the country into one of the most promising contract development and manufacturing organization (CDMO) hubs in the world, according to Arushi Jain, director, Akums Drugs & Pharmaceuticals Ltd.
Jain added, “India’s CDMO story is also being reshaped by the kind of medicines it is helping to develop. The industry is steadily moving beyond conventional small molecules toward more complex and high-value therapies. Three areas stand out: cell and gene therapies, which are opening new frontiers in regenerative medicine; antibody-drug conjugates, increasingly central to targeted cancer treatment; and nucleic-acid based therapies, including RNA platforms that gained prominence during the pandemic.”
Jain stated that biosimilars are emerging as a major opportunity. With a wave of biologic patents set to expire globally, Indian firms are expanding pipelines and investing in biologics capacity. Though India’s share of the global biosimilars market remains modest, the combination of cost efficiency and regulatory experience gives it a strong platform to scale exports in this fast-growing segment.
“These developments demand sophisticated facilities, strong process control and close collaboration with innovators. Indian CDMOs are steadily building that capability, positioning themselves not just as manufacturers, but as long-term partners across discovery, development and commercial production,” added Jain.
Jain stated, “India still lags in large-molecule biologics and advanced sterile manufacturing, and must continue to invest in high-potency compounds, fermentation and digital quality systems. Consistent regulatory performance remains critical as global scrutiny intensifies. Indian CDMOs now offer deep technical capability, regulatory maturity and a workforce that combines scale with scientific skill.
Industry estimates suggest India’s CDMO market could nearly triple by the end of the decade, growing from around $15.63 billion in 2023 to over $44.63 billion by 2029. In 2024, several Indian CDMOs reported a sharp rise in project requests as multinational firms looked to diversify away from concentrated manufacturing bases and build more resilient supply chains.
Jain further said, “India’s rise as a global CDMO hub is no accident. It reflects decades of manufacturing experience, a strong regulatory foundation and a deliberate shift toward higher-value, innovation-driven services. With global pharmaceutical outsourcing continuing to expand, India is well placed to capture a growing share of this opportunity. The transition now underway marks more than an industrial upgrade. It signals India’s move from a volume-driven exporter to a strategic partner in global drug development. If the current momentum holds, the country will not only support the world’s medicine pipelines, but help shape the future of how drugs are discovered, developed and delivered.”
Geopolitics has amplified the opportunity. Supply chain disruptions during the pandemic and rising trade frictions have pushed pharmaceutical companies toward a “China plus one” strategy. India has emerged as the most natural alternative, combining cost efficiency with regulatory alignment and engineering depth.
Jain added that private equity and strategic investors are moving quickly as Recent acquisitions and growth investments are helping Indian CDMOs modernise plants, expand biologics capacity and strengthen research platforms, accelerating the shift from contract manufacturing to integrated development services.
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