India is rapidly emerging as a strategic engine powering global pharmaceutical operations, with multinational drug makers increasingly shifting critical research, digital, and regulatory functions to the country through global capability centres (GCCs).
German pharmaceutical company Merck KGaA, founded in 1668, now treats India as a key global support hub, especially in drug development. Alongside manufacturing and sales operations, the company runs 3 GCCs in Bengaluru employing 2,500 professionals. Its Merck IT Centre, launched in 2018, focuses on digital platforms, enterprise IT, and data capabilities. The team also built myGPT, an in-house AI research tool, within 45 days of OpenAI’s November 2022 launch of ChatGPT.
The company’s R&D excellence centre, headquartered in Bengaluru with offices in Mumbai and Hyderabad, supports global drug research. A third GCC, Global Enterprise Solutions, established in 2023, handles procurement, finance, enterprise services, IT, innovation, and transformation functions.
Separately, U.S.-based Merck & Co., known globally as MSD, opened its first technology centre in Hyderabad, its 5th worldwide.
Swiss drugmaker Novartis has also expanded significantly. From a 20-member back office in 2001, its Novartis Corporate Center now employs 8,500+ professionals, supporting data science, clinical trials, regulatory operations, and enterprise IT globally. “Nearly every small molecule that reaches late-stage development in Novartis has some contribution from our teams in India,” said Ganpat Anchaliya.
Global pharma leaders including GSK, Pfizer, AstraZeneca, Roche, Bristol Myers Squibb, and Takeda Pharmaceutical Company have built large GCCs embedding AI, digital twins, and advanced analytics across drug discovery and commercialisation.
An EY–OPPI study shows 23 of the world’s Top 50 life sciences firms operate GCCs in India, with over half established in the past 5 years. India now hosts nearly 100 healthcare GCCs, employing over 15% of the country’s GCC workforce. These centres manage an estimated 45% of global drug discovery and development, 60% of regulatory affairs, and 54% of pharmacovigilance operations.
Investments in pharma GCCs have crossed $7bn. The number of centres has grown from 20 in 2010 to over 100 today and could reach 160 by 2030, with workforce size projected to rise from 280,000 in 2024 to 420,000 by 2030.
Healthcare GCCs are delivering 20% cost reduction and 40% savings in IT, R&D, and administrative work while transforming India into a global innovation hub supported by strong academia partnerships and advanced digital capabilities.
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