December 15, 2025
Over the last decade, India has quietly built one of the most strategic and defensible segments within global pharmaceuticals—Contract Research Organizations (CROs), Contract Development & Manufacturing Organizations (CDMOs), and their integrated evolution: CRDMOs.
What was once a low-cost outsourcing destination has now become a mission-critical partner for global pharma, biotech, and innovator companies. For private equity funds, institutional investors, and public market participants, this sector now sits at the intersection of structural growth, global supply-chain realignment, and margin-accretive business models.
CRO (Contract Research Organization)
CROs focus on the research and clinical side of drug development. Their services span:
They are deeply embedded in early-stage innovation and de-risking of drug pipelines.
CDMO (Contract Development & Manufacturing Organization)
CDMOs take molecules from lab to market:
CDMOs earn long-duration revenues tied to manufacturing contracts and regulatory approvals.
CRDMO (Contract Research, Development & Manufacturing Organization)
CRDMOs integrate research + development + manufacturing under one umbrella.
This “one-stop-shop” model is increasingly preferred by global innovators because it:
This is the highest-value and fastest-growing segment of the ecosystem.
Several structural forces are converging in India’s favour:
1. China+1 and Supply Chain De-risking
Global pharma companies are actively reducing dependency on China due to:
India offers comparable chemistry depth, better IP comfort, and 20–30% cost advantage, positioning it as the primary alternative.
2. Cost + Talent Arbitrage
India produces over 2 million STEM graduates annually, including chemists, pharmacists, and bioengineers.
Compared to the US and Europe:
This combination is nearly impossible to replicate elsewhere at scale.
3. Regulatory and Policy Tailwinds
Recent developments have materially improved India’s investment case:
India is moving from “low-cost” to “high-compliance, high-reliability”.
Pharma exports are projected to double to $60–65 billion by 2030, with higher-value APIs, biologics, and specialty manufacturing driving the mix shift.
South India has become the undisputed nucleus of India’s CRO/CDMO ecosystem due to a rare convergence of policy, talent, and infrastructure.
Key Clusters
States have aggressively competed through:
Syngene International (Bengaluru)
Sai Life Sciences (Hyderabad)
Anthem Biosciences (Bengaluru)
Aragen Life Sciences (Hyderabad)
From an investor’s lens, this sector checks multiple boxes:
Notably, several platforms have already delivered:
This explains why healthcare services have become one of the most crowded PE themes in India, alongside hospitals and diagnostics.
ndia’s CRO–CDMO–CRDMO ecosystem is no longer an emerging story—it is a structural, multi-decade opportunity.
South India, in particular, is evolving into a global life sciences services powerhouse, combining chemistry depth, manufacturing scale, and regulatory credibility.
For private equity investors, this is a platform-building opportunity.
For public market investors, this is a chance to participate in globally relevant Indian companies with long growth runways.
The next decade will likely see Indian CRDMOs embedded deep inside the innovation engines of global pharma—not as vendors, but as strategic partners.