India’s Contract Drug Makers Seek Government Support to Compete with China

India’s contract drug manufacturers are seeking greater government support to help them compete more effectively with Chinese rivals, according to a report by

Industry representatives say intense price competition, supply chain advantages enjoyed by Chinese firms, and rising operational costs have put pressure on Indian contract development and manufacturing organizations (CDMOs).

Call for Policy Backing

Manufacturers are reportedly urging the Indian government to introduce targeted incentives, improve access to financing, and streamline regulatory processes to strengthen domestic production capabilities.

Executives argue that enhanced policy support could help India expand its footprint in global pharmaceutical outsourcing, an area currently dominated in part by Chinese firms.

Competitive Pressures:

Chinese drug manufacturers benefit from large-scale infrastructure, integrated supply chains, and cost efficiencies that make it difficult for smaller or mid-sized Indian firms to match pricing.

Indian companies, however, point to their strong compliance track record with global regulatory standards and established relationships with Western pharmaceutical clients as competitive advantages.

Strategic Importance

The contract manufacturing sector plays a crucial role in global drug supply chains, particularly for active pharmaceutical ingredients (APIs) and finished formulations.

Industry leaders believe that with strategic investment and supportive policy measures, India could strengthen its position as a reliable alternative manufacturing hub amid shifting geopolitical and trade dynamics.

Government officials have previously emphasized the importance of boosting domestic pharmaceutical production as part of broader economic and industrial policy goals.

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