Biotechnology in India: Growth and Challenges
Since its establishment in 1986, the Department of Biotechnology (DBT) has played a pivotal role in advancing vaccine development and the pharmaceutical sector in India. However, the biotechnology sector has not paralleled the growth seen in the information-technology (IT) sector.
Major Developments and Policies
- Bio-E3 Policy: Launched to harness biotechnology for economy, environment, and employment.
- Bio-RIDE Scheme: Aimed at fostering biotechnology research, innovation, and entrepreneurship.
India Bioeconomy Report 2025
- The report highlights a 16-fold growth in the bioeconomy sector from $10 billion in 2014 to $165.7 billion in 2024.
- Projections suggest the sector could nearly double to $300 billion in the next five years.
- Major Segments: BioIndustrial and BioPharma are the largest, followed by BioIT and BioAgri.
- Sub-segments Driving Growth: Potable alcohol, biofuels, therapeutics, vaccines, Bt cotton, biofertilisers, and bioinformatics.
- Biotech startups increased from 4,237 in 2020 to 10,075 in 2024.
Opportunities and Initiatives
The bioeconomy is a significant economic driver as India transitions from fossil-fuel-based industrialisation. Biotechnology innovations can create environmentally friendly products, and the sector is expected to grow with an ageing population and rising chronic diseases.
- Government Efforts: Custom duty reduction on biotech reagents; promoting high-value biotech manufacturing.
Challenges and Recommendations
- Geographical Concentration: About 10 states account for 80% of the bioeconomy startups.
- Need for Infrastructure: States should enhance infrastructure, funding access, and skilled labor growth.
- Skill Shortage: Current employment of 3.5 million needs to increase to 10 million by 2030.
- Encourage private sector research and public R&D investment.
- Modernize regulatory frameworks for new biotechnology approvals.
- Promote startups in frontier technologies like cell and gene therapy, synthetic biology, etc.