India Rises in Global Pharma as 'China Plus 1' Takes Hold

India’s pharmaceutical sector is seeing early benefits, as global drugmakers begin to shift a portion of their outsourcing arrangements from China to Indian firms, following the China+1 strategy.

Major Contract Research and Manufacturing Organizations (CROs and CDMOs), such as Syngene, Neuland Labs, Divi's Laboratories, and Aragen have recently turned requests for quotations into pilot projects and small-scale contracts.

While the early stage traction is a positive signal of increasing confidence in India, the real economic impact is expected over the next three to five years. The pivot for global pharma, to India, is being driven by supply chain diversification, cost competitiveness, and emerging regulatory pressure.

To build on their recent momentum, Indian firms are developing their presence in high-value segments such as biologics, peptides, antibody-drug conjugates (ADCs), and oligonucleotides. Aragen is currently constructing a new biologics facility in Bengaluru, while companies such as Piramal Pharma and Cohance are expanding capabilities in ADCs and related modalities.

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The proposed U.S. BioSecure Act, to diminish reliance on Chinese biotech suppliers, is yet another impetus. While awareness remains low for investors, large multinationals have already begun updating their sourcing methodologies.

High attrition rates among young scientists and the need for a stronger innovation ecosystem are concerns. There are associations in industry such as the Indian Pharmaceutical Skills Organization (IPSO) that is working to improve the workforce by standardization and working towards talent development.