How India’s Bioeconomy Is Faring, The Road Ahead

THE CONTEXT: India’s bioeconomy in 2024 is valued at over USD 165 billion, constituting around 4.2% of GDP, with targets of reaching USD 300 billion by 2030 and USD 1 trillion by 2047. The new BioE3 policy focuses on boosting bio-manufacturing and biotech R&D, while addressing regulatory bottlenecks and regional imbalances to sustain high growth.

UNDERSTANDING BIOECONOMY:

• • • • Refers to the industrial use of biological resources (e.g., plants, animals, microorganisms) and the deployment of biological processes to create goods and services.
      • Traditional usage in healthcare, pharmaceuticals, and agriculture, now expanding into sectors such as fuels, plastics, textiles, and construction materials through modern biotechnological innovations.

EVOLUTION & GROWTH OF INDIA’S BIOECONOMY

1. 1. 1. Historical Expansion

         • • Rapid growth from USD 86 billion in 2020 to USD 165 billion in 2024.
           • Number of companies in the sector nearly doubled between 2021 and 2024 (5,365 to 10,075).

      2. Key Components

         • • Industrial Sector: Nearly 50% of the bioeconomy value. This includes biofuels and bioplastics.
           • Pharmaceuticals: Contributes about 35% of the value, dominated by vaccines.
           • Research & IT (R&D, Software, Clinical Trials, Bioinformatics): Fastest-growing segment in 2024.

      3. Regional Distribution

         • • Five states—Maharashtra, Karnataka, Telangana, Gujarat, and Andhra Pradesh—constitute over two-thirds of India’s bioeconomy.
           • The entire eastern and northeastern region jointly generates <6% of the total value, highlighting regional imbalances.

SIGNIFICANCE OF THE BIOECONOMY FOR INDIA

1. 1. 1. Economic Potential

         • • Projects a strong contribution to GDP (~4.2% in 2024), comparable to the US and China in relative terms.
           • Long-term vision: harnessing bio-based solutions could lead to a USD 1 trillion bioeconomy by 2047.

      2. Employment & Industrial Development

         • • Doubling of enterprises by 2030 could create about 35 million jobs.
           • Encourages skill development, entrepreneurship, and research-oriented job creation.

      3. Environmental Sustainability

         • • Bioresources offer renewable, eco-friendly alternatives (e.g., ethanol, bioplastics).
           • Aligned with global shifts towards circular economy and decarbonization efforts.

POLICY INITIATIVES & GOVERNMENT INTERVENTIONS

1. 1. 1. BioE3 Policy

         • • Announced in 2024 (Biotechnology for Economy, Environment, and Employment).
           • Aims to establish India as a global bio-manufacturing hub and R&D center in biotechnology.
           • Focus Areas: bio-based chemicals and enzymes, functional foods, precision biotherapeutics, marine and space biotechnology, and climate-resilient agriculture.

      2. Proposed Measures

         • • Incentivizing a network of universities, research institutions, startups, and industries.
           • Building on existing strengths (e.g., pharmaceuticals, vaccine manufacturing).
           • Single-window regulatory mechanisms for biotech innovations and setting up a National BioEconomy Mission.

CHALLENGES & CONSTRAINTS

1. 1. 1. Regulatory Hurdles

         • • Genetically Modified (GM) Crops: Continued reluctance to allow GM crops, limiting productivity gains.
           • Policy Uncertainties: The need for streamlined approvals, consistent regulations, and clarity on biosafety norms.

      2. Infrastructure & Regional Imbalances

         • • Concentration in a few states, with the eastern and northeastern regions contributing only a small fraction.
           • Necessity for better connectivity, research infrastructure, and industrial ecosystems in underrepresented regions.

      3. Innovation & R&D

         • • Sustaining high growth demands greater investments in advanced biotech R&D.
           • Scaling up startups from pilot projects to commercial ventures remains a challenge.

THE WAY FORWARD:

1. 1. 1. Policy Reforms & Incentivization

         • • Introduce coherent, transparent, and flexible regulations to encourage private investments, especially in GM and synthetic biology.
           • Enhance public–private partnerships and government-led mission-mode projects (National BioEconomy Mission).

      2. Infrastructure Development & Skill Building

         • • Strengthen physical and digital infrastructure in emerging clusters beyond the traditional biotech hubs.
           • Focus on biotech-specific education, training programs, and capacity building to nurture talent for this sector.

      3. R&D and Innovation Ecosystem

         • • Facilitate higher spending on biotechnology research, including cutting-edge domains like synthetic biology and gene editing.
           • Encourage creation of specialized incubators, accelerators, and collaborative research networks.

      4. Inclusivity & Regional Balance

         • • Promote outreach in underrepresented states through targeted investments and policy supports.
           • Leverage local resources (e.g., in the Northeast) for niche biological products and processes.

THE CONCLUSION: India’s bioeconomy offers a pathway to sustainable economic growth, employment generation, and environmental stewardship. The robust expansion projected over the coming years underscores the sector’s transformative potential. However, to achieve its ambitious targets—USD 300 billion by 2030 and eventually USD 1 trillion by 2047—a concerted effort is required to streamline regulations, foster innovation, address regional disparities, and build resilient infrastructure.

UPSC PAST YEAR QUESTION: Why is there so much activity in the field of biotechnology in our country? How has this activity benefitted the field of biopharma? 2018

MAINS PRACTICE QUESTION: Evaluate the effectiveness of recent policy initiatives like the BioE3 in unlocking the full potential of India’s bioeconomy

SOURCE:

https://indianexpress.com/article/explained/explained-sci-tech/martian-dust-health-risks-astronauts-9907741/