Indian Contract Drug Makers Demand Government Support to Compete with China in $22 Billion Market

India's contract drug manufacturers are calling for urgent government assistance to overcome regulatory challenges and enhance their competitiveness against China. The Contract Research Development and Manufacturing Organisation (CRDMO) sector in India is poised for significant growth, with projections estimating it could reach $22 billion to $25 billion by 2035, according to a report from Boston Consulting Group.

As global pharmaceutical firms look to reduce their reliance on Chinese suppliers, Indian manufacturers stand at a crucial juncture. They are urging the government to streamline import processes for essential raw materials, which currently face prolonged approval times. While Indian companies often take between eight to 15 days to initiate projects, their Chinese counterparts can accomplish the same in just three days.

Industry leaders, including Krishna Kanumuri, CEO of Sai Life Sciences, emphasize the potential of the Indian sector if supported adequately. However, they point out that existing policies lag behind the rapid changes required in the competitive landscape. Nandini Piramal, Chairperson of Piramal Pharma, highlighted the lack of logistics infrastructure, including customs warehouses and cold storage units, which adds unnecessary friction to operations.

Moreover, the absence of a centralized digital clearance system has resulted in delays that hinder efficiency. Peter Bains, CEO-designate of Syngene, echoed these concerns, stating that the existing "friction and delay" are significant disadvantages for India.

Despite the challenges, the Indian biotech industry has already attracted over $2.86 billion in investments, showcasing its potential. To further enhance capabilities, industry insiders are advocating for the establishment of a dedicated CRDMO park to simplify compliance and improve export-import processes.

As the Indian sector seeks to solidify its position in the global market, the need for supportive government policies has never been more pressing. With a strategic push, India's contract drug manufacturers can emerge as formidable players in the international pharmaceutical landscape.