India's pharma exports near $30 bn; CRDMOs, GCCs to power next innovation wave

New Delhi [India], November 21 (ANI): India's pharmaceutical exports are nearing the USD 30-billion mark, setting the stage for the next phase of industry innovation powered by Contract Research and Development Organisations (CRDMOs) and Global Capability Centers (GCCs), according to a new EY-Parthenon-OPPI report.
The study says the sector, anchored by India's dominance in generics and vaccines, a rapidly advancing CRDMO/CDMO ecosystem, and expanding GCCs, will be central to India's ambition of becoming a USD 30-35 trillion economy by 2047.
Titled "Fueling innovation, advancing equity: The power of partnerships and digital-first strategies driving Indian pharma's global dominance", the report highlights the transformative journey of India's pharmaceutical sector as it evolves from its historical role as the "pharmacy of the world" to a global leader in innovation and scientific research.
The report added that the primary insights from CXO interactions amongst pharma majors indicate that the industry must focus on long-term global leadership and importance of transitioning from a cost-driven model to one focused on innovation and value creation.
They further highlighted the necessity for regulatory agility, increased R&D investment, and talent development as critical areas for fostering a robust pharmaceutical ecosystem.
Reflecting on the report, Suresh Subramanian, National Lifesciences Leader, EY Parthenon India said, "Key areas such as regulatory ease, investment in next-generation therapies, and the development of a skilled workforce require urgent attention."
The report highlights India's position as one of the fastest-growing large economies, with its GDP soaring from USD 2.1 trillion to USD 4.3 trillion over the past decade. The government aims to transform the country into a USD 30 trillion to USD 35 trillion economy by 2047, with the pharmaceutical sector as a cornerstone of this ambition. Currently, the industry ranks third globally in volume and fourteenth in value, accounting for approximately 20 per cent of the global supply of generic drugs and 60 per cent of global vaccines.
Additionally, the report reveals that pharmaceutical exports have surged from USD 15.07 billion in 2013-14 to USD 27.85 billion in FY 2023-24, with projections to exceed USD 30 billion soon. This growth is not only vital for economic advancement but also crucial for public health, as a healthier population enhances labor participation and mitigates the economic impact of diseases.
The report emphasises the emergence of CRDMOs and CDMOs as pivotal players in the pharmaceutical landscape. The global CRDMO market is projected to reach USD 303 billion by 2028, growing at a CAGR of 9.0 per cent. This growth is driven by pharmaceutical companies increasingly outsourcing R&D and manufacturing to focus on core competencies, the report added.
Furthermore, the study finds that Indian CRDMOs are investing heavily in advanced manufacturing and analytics, positioning themselves as key partners in global research and development. This evolution allows India to transition from a low-cost production hub to an integrated partner in high-value innovation, enabling participation in cutting-edge science and technology.
The establishment and expansion of Global Capability Centers (GCCs) by multinational pharmaceutical firms in India, is becoming critical to enhancing the country's innovation ecosystem.
Approximately 50 per cent of leading global life sciences companies have set up GCCs in India, leveraging local talent and advanced digital capabilities, the report added.
These centers have evolved from mere cost-saving units to strategic assets that contribute significantly to enterprise-wide innovation and global business strategies. The report highlights that the integration of artificial intelligence, advanced analytics, and automation within GCCs is redefining drug discovery and development processes, positioning India as a global knowledge and innovation engine. (ANI)