India's Bioeconomy Current Status

 India's Bioeconomy Current Status

India's Bioeconomy is a vital part of its emerging economy, harnessing the power of biotechnology and related sectors to address some of the nation's most pressing challenges, including food security, healthcare, and environmental sustainability. As the world moves towards more sustainable and innovative solutions, India’s bioeconomy holds significant promise for growth, development, and job creation.

Here we will explore the current status of India’s bioeconomy and provide insights into strategies to sustain its growth in the future.

A new government report has estimated the value of India's bioeconomy in 2024 at over $165 billion, making up more than 4.2% of the country’s GDP.

According to the India Bioeconomy Report, issued by the Department of Biotechnology, there is substantial potential for growth, with the sector expected to reach about $300 billion by 2030 and $1 trillion by 2047.

 

Understanding India's Bioeconomy

The bioeconomy broadly refers to the production and use of biological resources, processes, and principles to generate goods and services. It encompasses various sectors such as agriculture, healthcare, industrial biotechnology, and environmental sustainability. In India, the bioeconomy includes industries like food production, biofuels, pharmaceuticals, and bio-based products, all of which rely on biological resources for development and innovation.

As of recent estimates, India’s bioeconomy is valued at over $70 billion and is expected to grow to $150 billion by 2025, with biotechnology playing a central role in this growth. India has a rich history in traditional biotechnology, supported by a highly skilled workforce and research ecosystem. With a large and diverse agricultural base, India is well-positioned to be a leader in biotechnology-driven growth in sectors like agriculture, medicine, and environmental sustainability.

 

Key Areas Driving Growth in India’s Bioeconomy

 

1. Agriculture and Food Processing:

   Agriculture remains the backbone of India’s bioeconomy, and the country is one of the world's largest producers of food. Advances in biotechnology are helping to improve crop yields, enhance food safety, and reduce waste. The Indian government has implemented several initiatives such as the National Mission on Sustainable Agriculture and the Pradhan Mantri Kisan Sampada Yojana (PMKSY) to support the growth of agricultural biotechnology.

 

2. Pharmaceuticals and Healthcare:

   India is known as the “pharmacy of the world,” being a major supplier of affordable generic medicines, vaccines, and biologics. Biotechnology innovations have been pivotal in the growth of India’s pharmaceutical sector. The country has become a hub for the production of biosimilars, vaccines, and other biopharmaceutical products, helping meet the healthcare needs of both domestic and international markets.

 

3. Environmental Sustainability:

   India's bioeconomy also plays a critical role in addressing environmental challenges. Biotechnology solutions are being increasingly applied to waste management, biofuels, and renewable energy production. India’s focus on renewable energy, including bioenergy, aligns with the goals of reducing carbon emissions and promoting sustainable growth.

 

4. Industrial Biotechnology:

   Industrial biotechnology refers to the use of living organisms or enzymes to manufacture products. India is making strides in using biotechnology to enhance industrial processes, reduce costs, and improve sustainability. From textiles to chemicals and fertilizers, industrial biotechnology can help reduce dependence on fossil fuels, improve efficiency, and minimize environmental harm.

 

Utilization of Biological Resources

Bioeconomy involves the use of biological resources like plants, animals, and microorganisms, as well as the replication of natural biological processes for producing goods and services.

Although the concept is not new, as biological resources and processes have been foundational in healthcare, pharmaceuticals, and agriculture for years, their applications are expanding into other industries. Biological resources, such as plants and microorganisms, are renewable, cost-effective, and widely available, while natural processes are increasingly being recognized for their sustainability and eco-friendliness.

A prime example is the growing use of ethanol, a biofuel produced through the fermentation of crops like sugarcane or corn by microorganisms, as a sustainable alternative to fossil fuel-based energy. Modern biology also offers eco-friendly alternatives in industries ranging from clothing and plastics to construction materials, medicines, and chemicals.

 

Economic Implications

Even in traditional sectors like healthcare and agriculture, there is a push to incorporate more biotechnology. This includes the development of biomedicines—products derived from biological resources rather than chemicals—and synthetic biology, which involves designing microorganisms with specific traits. These areas are rapidly gaining traction in biotechnology.

Given that the application of biological processes in the economy is still relatively limited, there is tremendous scope for further growth. In fact, significant expansion is already underway.

 

Growth of the Bioeconomy

The report highlights that the value of India’s bioeconomy has nearly doubled in the past five years, increasing from around $86 billion in 2020 to $165 billion in 2024. The number of companies involved in the bioeconomy has surged by nearly 90% over the past three years, from 5,365 in 2021 to 10,075 in 2024. This number is expected to double again by 2030, potentially employing up to 35 million people, as projected by the report.

Of the total bioeconomy value, nearly half—around $78 billion—originated from the industrial sector, particularly in biofuels and bioplastics. The pharmaceutical sector contributed another 35%, with vaccines being the main driver.

The fastest-growing segment in 2024 was research and IT, encompassing biotech software development, clinical trials, and bioinformatics used in drug research.

 

Regional Disparities

 

The report also noted that just five states—Maharashtra, Karnataka, Telangana, Gujarat, and Andhra Pradesh—accounted for over two-thirds of the bioeconomy’s total value. Conversely, the eastern and northeastern regions of India contributed less than 6%.

Maintaining high growth rates in the future will require significant innovation, incentives to scale up bio-based solutions, and the removal of policy and infrastructure challenges. The report also emphasizes the importance of addressing regional imbalances for sustained growth.

While the bioeconomy’s contribution to GDP (4.2%) is comparable to that of countries like the United States and China, the Bioeconomy of Spain and Italy contribute over 20% of their GDPs.

 

The BioE3 Policy

Recognizing the potential for biotechnology, the government launched the BioE3 policy (Biotechnology for Economy, Environment, and Employment) in 2024. This initiative aims to position India as a global leader in bio-manufacturing and a key hub for biotechnology research and development.

The BioE3 policy focuses on encouraging the establishment of a network of universities, research centers, start-ups, and industries for bio-manufacturing in areas such as bio-based chemicals, functional foods, precision biotherapeutics, marine and space biotechnology, and climate-resilient agriculture.

India already has strong capabilities in some of these fields, which can be built upon to produce commercially viable products.

 

Challenges Ahead

However, significant challenges remain. For instance, there is continued hesitation regarding the approval of genetically modified crops, which could greatly enhance agricultural productivity. The report urges the need to resolve regulatory uncertainty in agricultural biotechnology.

Additionally, the report calls for the establishment of a National BioEconomy Mission and streamlined regulatory processes for biotech innovations.

 

Conclusion

India’s bioeconomy is at a crossroads, with substantial opportunities for growth in various sectors such as agriculture, healthcare, and environmental sustainability. However, realizing this potential requires overcoming challenges related to policy, funding, infrastructure, and public acceptance. By fostering innovation, encouraging entrepreneurship, and promoting sustainability, India can build a robust and globally competitive bioeconomy that benefits both its people and the planet. The future of India’s bioeconomy holds immense promise, and with the right steps, it can become a key driver of economic growth in the coming decades.