India got a huge potential in CRAMS (Contract Research & Manufacturing Services) . Since 1990’s more MNCs find India for the following reasons viz. Larger hospitals with English the common language, cost efficiency, larger skill sets and R&D expertise and IPR compliance. India has a large pool of hospitals beds (around 700,000) and 220+ medical colleges.
India has got the right product mix, with large US FDA approved plants, significant pool of human resources and advancement biotechnology and complex technology services. CRAMS in India has two main segments, the major segment being Contract Manufacturing Services which accounts for 60%, while the Contract Research Services accounting for the rest. Current market estimates put the industry at USD 7.8 billion.
The industry has potential to reach more heights, but is hindered by lack of unified authority as enforcement of law as it differs from state to state and also the lack of medical professionals doing research on diseases and its sub sector.