The report jointly prepared by global consultancy firm Ernst & Young and industry body OPPI said Indian pharmaceutical contract manufacturing industry is growing at thrice the rate of the global outsourcing market, and is expected to reach $2.3 billion dollars from $1.1 billion in 2008.
"India scores well on its ability to create a differentiating cost value proposition, powered by its lower manufacturing costs and manpower and technical capabilities, but it needs to improve on its culture of environment and health safety compliance and infrastructure," the report said.
India's share of the total global outsourcing market is also estimated to increase from 2.8 per cent in 2007 to 5.5 per cent in 2010, it added.
Ernst & Young-OPPI report said the outsourcing industry is undergoing a paradigm shift with the rise of a number of new players from emerging economies who offer global capabilities and a substantial cost advantage.
The global outsourcing industry is also expected to grow at compound annual growth rate (CAGR) of 13 per cent between 2007 and 2010.
"Rationalisation of plants due to low capacity utilisation, new operating models for companies and the emergence of biologics are the key factors driving the growth of the global custom manufacturing industry," the report said.