Growth in India’s Bioeconomy Sector

Syllabus: GS3/Economy

Context

• Union Minister Dr. Jitendra Singh said that India’s Bioeconomy grew more than 10 times in the last 10 years.

What is  BioEconomy?

• The BioEconomy is the knowledge-based production and use of biological resources to provide products, processes and services in all economic sectors within the frame of a sustainable economic system.
• It encompasses sectors like agriculture, forestry, fisheries, food production, biotechnology, and bioenergy. 
• Subsectors of the BioEconomy in India are;
  • BioPharma or BioMedical: It includes the development and production of medical products and services, such as pharmaceuticals, medical devices, and lab-grown organoids.
  • BioAgri: It includes the development and production of genetically modified crops and animals, precision agriculture technologies, and bio-based products. EX: Bt Cotton. 
  • BioIndustrial: It includes the development and production of biobased chemicals and products using enzymes, biosynthetic routes, and recombinant DNA technology. 

BioEconomy of India

• India’s BioEconomy has grown 13-fold over the last decade, from $10 billion in 2014 to over $130 billion in 2024, with a projection to reach $300 billion by 2030. 
• In the Global Innovation Index, India has climbed from 81st place in 2015 to 40th out of 132 economies.
• India ranks 3rd in the Asia-Pacific region and 12th globally in terms of biomanufacturing.
  • Biotechnology, a sunrise sector, has achieved a valuation of Rs 75,000 crore over the past 10 years.
• In 2022, BioEconomy accounted for 4% of India’s gross domestic product (GDP) of $3.47 trillion and employs over 2 million people.

Government Initiatives

• Biotechnology Industry Research Assistance Council (BIRAC) established by the Department of Biotechnology (DBT) is aimed at strengthening and empowering emerging biotechnology enterprises to undertake strategic research and innovation.
• Policy initiatives of the Government of India (GoI) such as Startup India and Make in India programs are aimed to develop India as a world-class Biotechnology and Bio-manufacturing hub.
• Favorable Government Policies like Draft R&D Policy 2021, PLI Schemes and Clinical trial rules have propelled India to be the ‘pharmacy of the world’. 

Challenges for BioEconomy of India

• Global Competition: India’s BioEconomy faces stiff competition from more established bio Economies in countries like the USA, EU, and China, which have more advanced infrastructure, funding, and R&D capabilities.
• Intellectual Property (IP) Protection: Protecting intellectual property in the biotech sector is challenging, leading to concerns over innovation theft and lack of incentives for research.
• Lack of Infrastructure: Insufficient infrastructure for research, development, and commercialization of biotechnology innovations.
• Brain Drain: Talented scientists and researchers leave India for better opportunities abroad, reducing the country’s capacity for innovation.

Way Ahead

• Encourage increased public and private investment in biotech R&D through grants, tax incentives, and venture capital support.
• Engage in global research collaborations to leverage expertise, share resources, and accelerate the development of new technologies.
• Develop innovation clusters/ecosystems where academia, industry, and government entities can collaborate closely on BioEconomy initiatives.

Source: PIB