India’s pharmaceutical and healthcare Global Capability Centres (GCCs), which have been pivotal in advancing clinical research and drug discovery, are facing a slowdown in hiring due to uncertainty surrounding US tariffs and global economic headwinds.
This development has tempered the hiring momentum in a sector that has been emerging as a global innovation hub.
Experts predict a 6-7% reduction in net talent addition this fiscal year as companies adopt a cautious approach.
India continues to be a vital hub for research and development (R&D) despite this temporary setback.
Its long-term growth prospects are driven by innovation and a large talent pool.
Impact of US Tariffs on Pharma GCC Hiring
The US government’s tariff policies have created significant uncertainty for multinational corporations (MNCs) operating in India.
This issue was particularly pronounced during the Trump administration.
The imposition of reciprocal tariffs across sectors has led to a “wait-and-see” approach among companies, delaying large transformational projects and discretionary spending.
Pharma GCCs were initially on a trajectory of higher headcount growth. However, they have experienced a significant decline in hiring over the past few weeks.
Hiring Trends in Pharma GCCs
Active talent demand from the top 20 pharmaceutical firms has fallen significantly, with monthly hiring numbers dropping from 3,000-4,000 to below 1,000.
Companies such as Abbott, AstraZeneca, Bayer, Bristol Myers Squibb, Ferring, GSK, Merck, Novartis, Novo Nordisk, Pfizer, Roche, and Sanofi have taken a cautious approach.
They have paused manpower expansion plans while awaiting greater clarity on tariff-related costs.
Global Economic Headwinds and Long-Term Prospects
In addition to tariff-related uncertainties, global macroeconomic factors have contributed to the slowdown in hiring.
Fluctuating freight rates, potential regulatory changes, and geopolitical tensions have created a challenging environment for pharma GCCs.
These factors have tempered the outlook for headcount growth, which was initially projected at 18-22% for FY25 but is now estimated at 12-15% for FY26.
Despite the current slowdown, experts remain optimistic about the long-term prospects of pharma GCCs in India.
The shift in business strategies from mere operations centres to offshore units for high-end R&D projects is expected to continue driving talent demand.
India’s large talent pool and innovation capabilities make it an attractive destination for global pharma firms.
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