TLDR: India has rapidly solidified its position as a premier destination for Global Capability Centers (GCCs) in the life sciences sector, with 23 of the world’s top 50 companies establishing operations in the country over the past five years. A new report by EY India highlights the evolution of these centers from traditional back-office support to strategic innovation hubs, increasingly leveraging artificial intelligence for drug discovery and patient-centric solutions. The country’s robust talent pool and supportive ecosystem are key drivers of this growth.
India has rapidly emerged as a pivotal global hub for Life Sciences Global Capability Centers (GCCs), according to a recent report by EY India titled ‘Reimagining Life Sciences Global Capability Centers (GCCs)’. The analysis reveals that 23 of the world’s top 50 life sciences companies have established their GCCs in India, with a significant majority of these centers being set up within the last five years. This underscores India’s escalating importance in driving pharmaceutical research, innovation, and comprehensive value creation across the life sciences ecosystem.
The EY report emphasizes a profound transformation in the role of these Indian GCCs. They have evolved from merely handling traditional back-office functions to becoming strategic innovation engines. These centers are now integral to global mandates, actively contributing to critical areas such as drug discovery, digital therapeutics, and real-world evidence (RWE) analytics. A notable aspect of this evolution is the increasing adoption of artificial intelligence to accelerate pipelines and foster patient-centric innovation.
Arindam Sen, Partner and GCC Sector Lead – Technology, Media & Entertainment, and Telecommunications, EY India, stated, “Our analysis highlights how India has rapidly evolved from a support base to the very center of innovation for global pharma and healthcare. Life sciences multinationals are embedding their most strategic, knowledge-intensive work here, making India the epicentre for life sciences innovation, compliance, and future growth.” He further added, “In just five years, GCC penetration in enabling functions like finance, HR, supply chain, and IT has crossed about 60 per cent. But what truly stands out is the deepening role in core functions — from drug discovery and regulatory affairs to medical and commercial operations.”
Indian GCCs are now managing a broad spectrum of integrated functions. On the enabling side, they handle 70% of finance, 75% of HR, 62% of supply chain, and 67% of IT functions for their global counterparts. More significantly, their involvement in core functions has seen substantial growth, with 45% penetration in drug discovery and development, 60% in regulatory affairs, 54% in medical affairs, and 50% in commercial operations. This expanded scope includes clinical trial operations, pharmacovigilance, regulatory affairs, supply chain analytics, and biostatistics.
The growth is fueled by India’s robust talent ecosystem, which boasts over 2.7 million life sciences professionals. The country also offers a thriving startup environment, home to more than 100 unicorns, and an expanding supply of Grade-A commercial infrastructure across major cities and emerging Tier-II and Tier-III locations.
Major global players have significantly invested in India. Early entrants like TEVA, Novartis, AstraZeneca, Mylan, and Johnson & Johnson established centers between 2000 and 2010. From 2010 to 2020, companies such as Thermo Fisher, Merck, Eli Lilly, Sanofi, and Boston Scientific expanded their footprint. Since 2020, the momentum has accelerated with Abbott, Viatris, Siemens Healthineers, and HCA Healthcare setting up advanced centers focused on digital transformation, AI-led diagnostics, and next-generation supply chains. Sanofi, for instance, announced a $400 million expansion of its Hyderabad GCC, aiming to double its workforce and develop its largest global hub, powered by AI and digital platforms for R&D, manufacturing, and commercial operations.
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Looking ahead, the EY report envisions leading Indian GCCs operating as “HQ twins,” co-owning innovation, accelerating business outcomes, and actively engaging with the external ecosystem. Their future trajectory will be shaped by imperatives focused on driving transformation, resilience, and ecosystem collaboration.
