Accelerating growth: Progress in India's biotech sector looks promising

Since the establishment of the Department of Biotechnology (DBT) in 1986, the subject of biotechnology has successfully been harnessed in India to aid vaccine development and accelerate the growth of the pharmaceutical sector. However, it could never match the pace of the information-technology (IT) sector’s growth in the country. The launch of the Bio-E3 policy, or Biotechnology for Economy, Environment, and Employment, and the Bio-RIDE (Biotechnology Research Innovation and Entrepreneurship Development) scheme last year, thus marked a crucial step in positioning India as a global bioeconomy leader. A new report released by the Biotechnology Industry Research Assistance Council (BIRAC) presents the potential outlook for the sector.

 

According to the report, titled “India Bioeconomy Report 2025”, the bioeconomy sector witnessed a 16-fold expansion in the past decade, from $10 billion in 2014 to $165.7 billion in 2024. The sector is further poised for significant growth, with projections indicating that it could nearly double to $300 billion in the next five years. BioIndustrial and BioPharma constitute the two largest segments of India’s bioeconomy, followed by the BioIT and BioAgri sectors. At sub-segment level, the dominant areas driving growth include potable alcohol, biofuels, therapeutics, vaccines, Bt cotton, biofertilisers, and bioinformatics. The biotech startup ecosystem has also expanded rapidly, with the number swelling to 10,075 in 2024 from 4,237 in 2020.

 

Clearly, the report’s findings reinforce the bioeconomy’s status as an important economic driver. As India transitions away from fossil-fuel based industrialisation, innovations in biotechnology can facilitate the development of environmentally benign products. At the same time, an ageing population and a rising incidence of chronic diseases will support the growth of the pharma and wellness sector. Through the Bio-E3 and Bio-RIDE policies, India is attempting to boost biotech manufacturing, including high-value microbes, gene-modification technologies, bioplastics, biomaterials, and high-precision medical devices. In 2024, the government did well to recalibrate Customs duty from 150 per cent to 10 per cent on small-volume critical laboratory chemicals and biotech reagents imported by biotech companies.

 

Yet several challenges remain, particularly in scaling up biomanufacturing. So far, about 10 states account for about 80 per cent of the bioeconomy startup base, indicating a high level of geographical concentration. The laggard states should put in place robust infrastructure, improve access to funding, and facilitate the growth of skilled labour to embrace the biotech revolution. This includes establishing bioincubators and accelerators and fostering innovation in research institutions. A shortage of skilled professionals also hinders innovation. While the sector employs around 3.5 million people, this needs to be scaled up to 10 million by 2030. This calls for training more specialised biotech professionals through greater industry-academia linkages. At the same time, there is a need to encourage private sector research and increase public research and development. It is thus time to modernise and implement a single-window regulatory framework that governs the review and approval process of new biotechnologies. Further, as the report rightly notes, startups should be encouraged to work on frontier technologies including cell and gene therapy, synthetic biology, precision agriculture, sustainable materials, and integrating artificial intelligence with biology to advance drug discovery and diagnostics.