Why Biotechnology?
India’s bioeconomy is anticipated to reach $300 billion by 2030. Biopharma accounts for 49% share of the bioeconomy contributing $39.4 billion. The Indian vaccination market is projected to be worth $3.0 billion, by 2025. The market is expected to grow at a CAGR of 22%, reaching $12 billion by 2025. The country holds 20% of the global biosimilar development pipeline. Additionally, 65% of the WHO's Vaccine Requirements are sourced from India. The country had more than 9,000 biotech patents, in 2022.
The significant R&D investment- about 37% of the total industrial R&D expenditure is attributed to the biotechnology sector. The strong network of research institutions, universities, and industry players, is aiding the translation of scientific discoveries into commercial products. The cabinet launched two Department of Biotechnology schemes into Biotechnology Research Innovation and Entrepreneurship Development (Bio-RIDE). The government will allocate $1.1 billion for 2021-22 to 2025-26 under the 15th finance commission.
Government initiatives such as the National Biotechnology Development Strategy (NBDS) 2021-2025 support the industry growth. The country allows 100% FDI under the automatic route for greenfield pharmaceuticals and manufacturing medical devices. The National Biopharma Mission supported 101 projects including more than 150 organizations and 30 MSMEs, in 2023.
The consumption and exports of diagnostic and medical devices are expected to increase significantly in India. The therapeutics sector is predicted to generate $15 billion in bioeconomic activity by 2025, owing to an increase in consumption and exports of diagnostic and medical devices.
An increase in the number of biotech incubators and the growth of start-ups is anticipated to drive the Indian market in years to come. The major biotechnology clusters include Haryana, Bengaluru, West Bengal, and Maharashtra.
Job Creation
Make in India initiative can create 100 million additional jobs in R&D, engineering design, and bioprocess manufacturing.
Cost Economy
India’s proximity to Asia, Africa, and the Middle East facilitates the integration of the global supply chain for cost-effective exports. The country also offers cost-effective manufacturing.
Infrastructure Development
India is becoming a global hub for biologics and biosimilars. The country homes around 3500 biotech start-ups.
Focus on R&D
The government is focusing on the development of biotechnology parks and incubators. The country is emerging as a preferred location for clinical trial and contract research.
