India Tops Global Charts for CDMO Appeal, Says LoEstro Study

India is fast developing as the world’s most attractive landscaping destination for contract development and manufacturing organization (CDMO) services, shows a new report by LoEstro Advisors. Expected to grow at a 14 percent CAGR, the Indian CDMO industry is likely to reach USD 14 billion by FY28, driven by regulatory shifts, global supply chain shifts, and strategic investments.

India’s unique strengths are its competitive cost structure, a highly skilled pharmaceutical workforce, and a strong regulatory track record. The country boasts 585 FDA-approved manufacturing plants and is second only to the United States to add over 200,000 pharmacy graduates to its talent pool each year. Affordable land and labor further enhance the demand for global biopharma companies looking to scale operations quickly and efficiently.

Rakesh Gupta, Managing Partner at LoEstro Advisors, mentioned that recent geopolitical developments, in particular the proposed BIOSECURE Act in the U.S. started accelerating the shift away from China. With dual-party support, this act could restrict federal contracts with companies tied to Chinese biotech firms, prompting American pharmaceutical players to seek alternative CDMO partners. India is increasingly seen as the preferred option, thanks to its proven reliability and regulatory compliance.

The report also identifies a shift in CDMO demand towards high-value, next-generation therapies such as mRNA platforms, antibody-drug conjugates (ADCs), and cell and gene therapies. Indian CDMOs are responding by adding up investments in advanced manufacturing infrastructure, digital transformation, and integrated service delivery models.

Consolidation is another crucial trend, with private equity-backed platforms like Cohance, Viyash, and Sekhmet actively shaping the sector. For mid-sized CDMO players, this alliance wave presents both a challenge and an opportunity to differentiate through specialization, scale tactically, and attract global clients.

As global pharma companies reorganize supply chains in response to unpredictable costs, ESG regulations, and geopolitical risks, India is no longer just a cost-effective instead, it is a strategic powerhouse. The country’s CDMO sector is growing from a low-cost vendor model to a high-capability, high-credibility partner in global drug development.