New Delhi, Aug 9 - Being the world's third largest producer of drugs by volume and the third largest drug research and development workforce, India is fast becoming the most preferred destination for contract research and clinical trials, says a study by an industry lobby.

A joint study by the Federation of Indian Chamber of Commerce and Industry (Ficci) and Ernst and Young found clinical trials in India cost 50-60 percent cheaper than in the developed markets.

'The Indian market is growing by leaps and bounds and is gearing itself to becoming one of the fastest growing clinical research destinations with a growth rate that is two and a half times the overall market growth,' the industry study said.

The country has a booming domestic pharma market that is growing at a rate of 12-14 percent annually.