BioE3 Policy

Syllabus: GS3/Biotechnology

Context

The Union Cabinet cleared a proposal to bolster biotechnology-based manufacturing, called BioE3 (Biotechnology for Economy, Environment and Employment) Policy.

High performance biomanufacturing is the ability to produce products from medicine to materials, address farming and food challenges, and promote manufacturing of bio-based products through integration of advanced biotechnological processes.

To address the national priorities, the BioE3 Policy would broadly focus on the following strategic/thematic sectors:
- high value bio-based chemicals, biopolymers & enzymes;
- smart proteins & functional foods;
- precision biotherapeutics;
- climate resilient agriculture;
- carbon capture & its utilisation;
- marine and space research.
The policy includes innovation-driven support to R&D and entrepreneurship across thematic sectors.
Significance:
- The policy will accelerate technology development and commercialization by establishing Biomanufacturing & Bio-AI hubs and Biofoundry.
- Along with prioritizing regenerative bioeconomy models of green growth, this policy will facilitate expansion of India’s skilled workforce and provide a surge in job creation.
- The Policy will further strengthen Government’s initiatives such as ‘Net Zero’ carbon economy & ‘Lifestyle for Environment’ and will steer India on the path of accelerated ‘Green Growth’ by promoting ‘Circular Bioeconomy’.
- It will foster an advanced future that is more sustainable, innovative, and responsive to global challenges and lays down the Bio-vision for Viksit Bharat.

The biotechnology sector, mainly due to its multidisciplinary approach, holds the potential to provide an array of solutions for challenges in various sectors such as health, agriculture, environment, energy, and industrial processes.
The present era is an opportune time to invest in the industrialization of biology to promote sustainable and circular practices to address some of the critical societal issues:
- such as climate change mitigation, food security and human health.
India is home to young minds and has the potential to build a pool of affordable high-quality skilled workforce.
Global biotechnology industry is growing at the rate of 7.4 percent and there is huge demand within each segment of the industry that Indians can cater to.
With an established IT system and infrastructure, growth in Bio-IT, an untapped segment, could propel the growth.
Biofuels could be of strategic importance given the increasing global energy needs.
New diseases & lifestyle changes will boost demand for drugs and devices.
- Patient pool is expected to increase over 20% in the next 10 years, mainly due to the rise in population.

India is among the Top 12 destinations for biotechnology worldwide and 3rd largest destination for biotechnology in Asia Pacific.
India’s BioEconomy has crossed an estimated $130 Bn in the year 2024 with projections to reach $300 billion by 2030.
India’s Biotechnology sector is categorised into Biopharmaceuticals, Bio agriculture, Bio IT and Bio Services.
- Biopharmaceuticals: India is one of the biggest suppliers of low cost drugs and vaccines in the world. India also leads in biosimilars, with the most number of biosimilars approved in the domestic market.
- Bio Agriculture: With nearly 55% of Indian terrain under agriculture and allied activities, India is one of largest producers of Bt-Cotton and has the 5th Largest Area of Organic Agriculture Land globally.
  - BioAgri, consisting of Bt Cotton, pesticides, marine biotech, and animal biotech has the potential to nearly double its BioEconomy contribution from $10.5 Bn to $20 Bn in 2025.
- Bioindustrial: The application of biotechnology to industrial processes is transforming manufacturing and waste disposal across the country.
- Bio IT & Services: India offers a strong capability in contract manufacturing, research and clinical trials, and is home to the most US FDA approved plants globally outside of the US.

The educational curriculum does not prepare the students for the industry’s demands.
Need for state-of-the-art research facilities across the country to boost R&D.
Lack of venture capital funding due to information asymmetry regarding the biotech industry.
Low percentage of clinical trials conducted in India when compared to the rest of the world is a concern.
Lack of Investment in Research: Israel invests as much as 4.2 percent of its GDP in research, being the second largest spender after South Korea (4.3 percent).
- By comparison, India’s spending on research is less than 1 percent of its GDP.
Lack of Private Funding: The Indian government undertakes more than 60% of the total research and development expenditure.
- This is in stark contrast with countries like Israel, US, China, Japan, Republic of Korea and Australia where more than 70 % of the spending is undertaken by the private sector on an average.

There are 9 DBT-supported biotech parks and 60 BIRAC-supported bio-incubators in the country.
In the Interim Budget 2024-25, the Department of Biotechnology (DBT) was allotted Rs. 2,251.52 crore (US$ 271 million).
National Biopharma Mission is supporting 101 projects including more than 150 organizations and 30 MSMEs.
The National Biotechnology Development Strategy 2020-25, provides the government with a platform to strengthen skill development, resource and innovation converging into one strong ecosystem for knowledge sharing.

With a total population of 1.4 billion, 47% being under the age of 25, India has a large pool of young and skilled workforce.
India has a large reservoir of scientific human resources including scientists and engineers.
An increase in the number of biotech incubators will boost research and promote the growth of start-ups, which is critical for the success of the Indian biotech industry.
It is important to build a resilient biomanufacturing ecosystem in the country to accelerate cutting-edge innovations for developing bio-based products.

Source: TH

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