India’s Bioeconomy & Road Ahead

Syllabus: GS3/ Economy, Environment

In News

• India BioEconomy Report has pegged the value of India’s bioeconomy in 2024 at more than $165 billion, accounting for over 4.2% of the country’s GDP.
  • The report highlighted ample opportunity for this sector to grow to about $300 billion by 2030, and to $1 trillion by 2047.

What is Bioeconomy?

• Bioeconomy refers to the industrial use of biological resources (plants, animals, and microorganisms), and the replication of natural biological processes in the production of goods and services.
• Bioresources like plants or microorganisms are renewable, relatively cheap, and locally available, while natural processes are more sustainable and eco-friendly.
• A prime example of this is the growing use of ethanol, which is produced through fermentation of crops like sugarcane or corn by microorganisms, as a biological alternative to fuels traditionally derived from hydrocarbons.

Why Bioeconomy Matters for India?

• Economic Growth & Jobs:
  • Expected to contribute $1 trillion by 2047.
  • The number of companies in the bioeconomy has increased by almost 90% in the last three years.
  • Nearly half the value of the bioeconomy (roughly $78 billion) was generated in the industrial sector, for the development and use of biofuels and bioplastics.

• Food & Agriculture Security:
  • GM technologies improve yields by 21%.
  • Biofertilizers enhance soil health.
  • Innovations like golden rice combat micronutrient deficiencies.
• Healthcare Access:
  • Affordable drug and vaccine production (e.g., CERVAVAC – HPV vaccine).
  • Gene therapy advancements (e.g., Hemophilia A trial).
  • India supplies 25% of WHO’s total vaccine volume.
• Environmental Benefits:
  • Promotes circular economy via waste-to-energy technologies.
  • Reduces reliance on fossil fuels with biogas and ethanol.
  • Supports biodiversity conservation and eco-restoration (e.g., TERI’s Oilzapper).
• Climate Action:
  • Helps achieve India’s net-zero target by 2070.
  • Reduces emissions through bio-based alternatives.

BioE3 Push For India’s Bioeconomy

• To catalyze this growth, the government launched the BioE3 policy in 2024—Biotechnology for Economy, Environment, and Employment.
• The policy promotes:
  • Establishment of Bio-AI Hubs, Bio-Foundries, and Bio-Enabler Hubs
  • Focus on advanced technologies, sustainable biomanufacturing, and pan-India implementation
  • Assam became the first state to formally adopt the BioE3 framework, setting the stage for widespread national rollout.

Other Initiatives 

• BioSaarthi Mentorship Initiative (2025): BioSaarthi is designed as a six-month cohort facilitating structured mentor-mentee engagements, offering personalized guidance to emerging entrepreneurs in the biotech sector.
• Draft National Biotechnology Development Strategy (2020–25): Targets $150 billion bioeconomy by 2025, focusing on R&D innovation, Industry competitiveness & startup growth.
• Biotechnology Industry Research Assistance Council (BIRAC): Public sector interface to Fund biotech startups.
• National Biopharma Mission: Supports clinical trials, biosimilars, biotherapeutics, and vaccine development.
• PM-JIVAN Yojana: Focus on bioethanol and compressed biogas from agri-waste.
• SATAT & GOBARdhan Schemes: Promotes bio-CNG plants and waste-to-energy models, aligned with rural bioeconomy goals.
• Global Biofuel Alliance (2023): Led by India, USA, and Brazil to strengthen biofuel supply chains and reduce fossil fuel dependence.
• IP Guidelines (2023): Encourages commercialization of public-funded research.

Challenges to Address

• Despite progress, India’s bioeconomy faces several hurdles:
  • Fragmented Regulation: Overlaps between agencies delay biotech approvals.
  • Limited Investment: High risk and long return on investment deter private capital.
  • IP & Bio-piracy Issues: Weak enforcement hampers innovation and indigenous protection.
  • Weak Industry-Academia Linkages: Limits commercial translation of research.
  • Import Dependence: On high-end equipment and biotech inputs.
  • Skill Shortages: Need for trained professionals in genomics, bioinformatics, etc.
  • Public Perception: Skepticism around GMOs and lab-grown food remains high.
  • Environmental Risks: Overexploitation of biological resources could harm biodiversity and land use.

Way Ahead

• Strengthen Policy Implementation & Coordination: Ensure effective rollout of the BIO-E3 Policy across all states.
  • Establish a National Bioeconomy Mission to provide centralized coordination.
  • Promote state-level policies aligned with national bioeconomy goals (as Assam has done).
• Boost Investment & Public-Private Partnerships: Create dedicated Bioeconomy Investment Funds.
  • Offer tax incentives and risk-sharing models to attract private capital in high-risk biotech ventures.
  • Scale PPP models in R&D, manufacturing, and skill development.
• Accelerate Regulatory Reforms:
  • Streamline regulatory frameworks through a single-window system (expand BioRRAP).
  • Harmonize biotech approvals across agencies (DBT, FSSAI, GEAC, etc.).
  • Build capacity in biosafety and ethics review boards for faster innovation deployment.
• Foster Research, IP & Innovation Ecosystem: Fast-track IP approvals and set up specialized IP courts for biotech.
  • Strengthen academia-industry linkages through co-development platforms.
  • Encourage applied research in synthetic biology, gene therapy, bioinformatics, etc.
• Expand Biotech Infrastructure & Hubs:
  • Set up Bio-AI Hubs, Biofoundries, and bio-incubation centers in Tier 2/3 cities.
  • Invest in shared testing labs, pilot-scale facilities, and data repositories.
  • Support precision farming zones and bio-industrial parks.
• Empower Startups & Entrepreneurs: 
  • Scale initiatives like BioSaarthi for mentorship and global exposure.
  • Strengthen BIRAC schemes for funding, incubation, and early-stage scale-up.
  • Encourage grassroots bio-entrepreneurship and women-led biotech ventures.
• Invest in Skilling & Education: Integrate bioeconomy curricula in universities and skill development missions.
  • Establish Centers of Excellence in genomics, molecular biology, and bio-manufacturing.
• Enhance Global Collaboration: Forge R&D partnerships with biotech leaders like the EU, Japan, USA.
  • Lead international forums like the Global Biofuel Alliance and One Health platforms.

Source: IE