By Sonia Boolchandani
Over the past few months, global markets have been influenced significantly by the U.S. presidential election. The mantra, “When America sneezes, the world catches the cold,” rings true, as the policies of a new administration ripple across global economies. One sector poised to benefit from these shifts is India’s pharmaceutical industry, specifically the Contract Development and Manufacturing Organization (CDMO) segment.
With the U.S. increasingly adopting an anti-China stance under President Trump, the potential for India to gain traction in the pharmaceutical sector, especially CDMO services, has grown. While the world speculated on what the election results would mean for various industries, it’s clear that India stands to benefit, particularly in the pharmaceutical manufacturing space.
Why India Could Win Big in the CDMO Space
The U.S. Biosecure Act, a proposed piece of legislation designed to curb reliance on Chinese pharmaceutical and biotech suppliers, has been at the center of these discussions. The Act aims to bar federal contracts with five major Chinese life sciences companies—WuXi AppTec, WuXi Biologics, BGI Group, MGI, and Complete Genomics—citing national security risks tied to China’s involvement in the global pharmaceutical supply chain.
Legislation like the Biosecure Act typically makes its way through the U.S. Congress by passing in both the House of signed into law by the President. This act cleared a major hurdle when Representatives and the Senate before being it garnered overwhelming bipartisan support in the House in September. However, its path to becoming law faced complications when it was excluded from the 2025 National Defense Authorization Act (NDAA), widely seen as its best vehicle for passage.
Despite this setback, the Act remains a critical piece of legislation in ongoing efforts to restructure global pharmaceutical supply chains. If it fails to advance this year, it may face further delays or opposition as new lawmakers take office and priorities shift. For countries like India, however, the broader trend of reducing reliance on China presents a unique opportunity to step in and capture a larger share of the global pharmaceutical and CDMO markets.
India’s pharmaceutical industry, recognized globally for its generics manufacturing capacity, is stepping up to fill the void left by Chinese manufacturers. India already has a robust infrastructure for drug development, coupled with a large pool of skilled labor and lower manufacturing costs.
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