India’s contract development and manufacturing organisation (CDMO) sector is expected to create between 45,000 and 60,000 new jobs by 2028-29, but a shortage of specialised talent could emerge as a major constraint on growth, according to a workforce study by CIEL HR.
The report pointed to significant gaps between industry demand and available talent, particularly in advanced scientific and technology-driven roles. Demand for AI capabilities in research and development positions has reached 24%, yet fewer than 1% of professionals in the available talent pool possess such skills. The mismatch is also evident in manufacturing and commercial functions, where AI-skilled professionals remain scarce despite growing digital adoption across the industry.
The study found that more than 60% of India’s CDMO workforce is concentrated in a handful of states, led by Maharashtra, Gujarat and Telangana. This concentration increases dependence on limited talent pools, while emerging hubs such as Tamil Nadu, Andhra Pradesh and the National Capital Region continue to lag behind established centres.
State-level analysis showed Maharashtra accounting for 24.2% of CDMO talent, followed by Gujarat at 19.4% and Telangana at 17.8%. Together, the three states command more than 61% of the sector’s talent base. Karnataka, while smaller in size, recorded stronger AI penetration than the national average, particularly in data and analytics functions.
The report also highlighted future workforce challenges in biologics manufacturing. While the segment is projected to grow at an annual rate of 13-15%, fewer than 8% of India’s pharma graduates currently possess bioprocessing training, creating what the study described as a workforce readiness gap that could persist for three to four years.
Another concern is employee retention. Attrition in the sector stands at 25-30%, particularly among mid-career quality and research professionals. To address capability shortages, the report expects 4,000 to 6,000 experienced professionals working overseas to return to India between 2026 and 2028, helping fill gaps in biologics and sterile manufacturing operations.
Commenting on the findings, Aditya Narayana Mishra, Managing Director and Chief Executive Officer, CIEL HR, said: “The CDMO sector is entering a phase where competitive advantage will be the ability to integrate intelligence into every layer of operations. AI is becoming central to how research is accelerated, manufacturing is optimised and client commitments are delivered. The real challenge ahead is building depth of talent that can translate this potential into consistent outcomes at scale.”
The study also projected the emergence of specialised roles such as tech-transfer specialists, which could account for 3-5% of the CDMO workforce by 2028 as pharmaceutical manufacturing programmes become more complex and regulated.