CRDMOs, GCCs, and innovation-led growth rise as India shifts from scale to science: OPPI-EY

As India aspires to become a $30 trillion to $35 trillion economy by 2047, the pharmaceutical industry is poised to play a critical role in driving economic growth and enhancing public health, as per a latest report by EY Parthenon and Organisation of Pharmaceutical Producers of India (OPPI).  

There are three interlinked pillars defining India's pharmaceutical industry: dominance in generics and vaccines, the advancing CRDMO/CDMO sector, and the expansion of Global Capability Centers.

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 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% of leading global life sciences companies have set up GCCs in India, leveraging local talent and advanced digital capabilities.

The report 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 report proposes a three-pronged strategy to unlock India’s $450 billion potential:

• Regulatory agility and policy leadership
• R&D investment and innovation financing
• Talent and capability development

Reflecting on the report launch, 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. Our report shows a clear path forward, powered by strategic partnerships, digital acceleration, and policy enablers that can help India evolve from a manufacturing hub to a global life sciences innovation powerhouse.”

Adding to it, Anil Matai, Director General, Organisation of Pharmaceutical Producers of India said, “By focusing on high-value opportunities, enhancing regulatory frameworks, and fostering partnerships among stakeholders, India can solidify its position as a leader in pharmaceutical innovation and advanced manufacturing by 2047. The collective efforts of industry, government, and academia will be essential in realising this vision, ensuring that India not only meets its ambitious economic goals but also contributes significantly to global health and well-being.