Bio-Economy in India
Kartavya Desk Staff
Syllabus: Economy: Energy
Source: PIB
Context: Union Minister Dr Jitendra Singh emphasized that the next Industrial Revolution will be driven by the bio-economy, with India’s biotech sector growing rapidly.
The sector has expanded 13-fold over the last decade, reaching over $130 billion in 2024, and is projected to hit $300 billion by 2030.
What is Bio-Economy?
The bio-economy refers to an economic system that focuses on the sustainable production, utilization, and transformation of biological resources, including renewable biological materials, products, and processes. India’s bio-economy signifies a promising pathway to holistic development.
Status of India’s Bio-economy:
• Value: India’s bio-economy jumped from $8 billion in 2014 to $100 billion (2.6 per cent share of India’s GDP in 2023) and the country now targets $150 billion by 2025.
• Market share: India has a 3-5% market share in the global biotechnology industry and it ranks 12th in the world in biotech and 3rd in Asia-Pacific.
• Approved plants: India has the second highest number of USFDA-approved manufacturing plants outside the US.
• Startups: On average, at least three biotech startups were incorporated every day in 2021 (a total of 1,128 biotech startups set up in 2021) and the industry crossed USD 1 billion in research and development spending.
• The Indian Diagnostics and medical devices market is likely to see a huge jump both in terms of consumption and exports. Covid-19 helped the nation to create the right ecosystem to manufacture, source, and export as well.
Potential contribution of bio-economy:
• Growth and Employment: The bio-economy has the potential to create numerous jobs across sectors, from agriculture and manufacturing to research and development. g. Bt cotton adoption led to a significant increase in cotton production, benefiting farmers’ income.
• g. Bt cotton adoption led to a significant increase in cotton production, benefiting farmers’ income.
• Exports and Trade: Bio-based products, pharmaceuticals, and agricultural exports contribute significantly to India’s export earnings. India is the world’s largest provider of generic drugs, accounting for 20% of global generic drug exports.
• India is the world’s largest provider of generic drugs, accounting for 20% of global generic drug exports.
• Innovation and Research: Investments in biotechnology research and innovation bolster economic competitiveness and contribute to cutting-edge technologies. E.g. New segments like smart proteins, protein and peptide-based materials, contact lenses, etc.
• E.g. New segments like smart proteins, protein and peptide-based materials, contact lenses, etc.
• BioServices sector: which includes Contract Research Organizations (CROs) and Contract Development and Manufacturing Organizations (CDMOs), along with the BioIT segment, is projected to experience substantial growth from $4 billion to $26.6 billion. This remarkable expansion represents a near quadrupling of the segment’s value.
• This remarkable expansion represents a near quadrupling of the segment’s value.
• BioPharma segment: India can leapfrog in the Vaccines and Therapeutics segment. These two together account for nearly 50 per cent share of the BioPharma and the Diagnostics labs, medical devices, and services segment estimated to reach $60 billion.
• Awaiting potential: India has a huge wealth of bio-resources, an unsaturated resource waiting to be harnessed and an advantage in biotechnology especially due to the vast biodiversity and the unique bio-resources in the Himalayas.
Positive impacts of bio-economy on citizen lives in India:
• Healthcare Access: The bio-economy improves healthcare accessibility through affordable generic drugs, diagnostic tools, and medical technologies. E.g. PM Janausadhi Kendra.
• Nutritional Security: Innovations in agriculture and food processing enhance nutritional quality and address food security challenges. E.g. fortification of rice with vitamin A.
• Environmental Sustainability: The adoption of bio-based products, sustainable agriculture practices, and biofuels reduces environmental degradation and fosters a greener economy. E.g. 20 % Ethanol blending in petrol.
• Inclusive Growth: The bio-economy’s multi-sectoral nature can support the growth of micro, small, and medium-sized enterprises, promoting inclusive economic development.
Challenges in the Bio-Economy Sector:
• Regulatory Issues: Uncertain regulations and lack of uniform standards.
• Research Limitations: Limited advanced research centres and inadequate R&D funding.
• Ethical Concerns: Ethical issues like genetic modification under Responsible Research and Innovation principles.
Initiatives and Policies to Boost Bio-Economy:
• BIRAC’s Role: The Biotechnology Industry Research Assistance Council (BIRAC) fosters biotech innovation in India through schemes like the Biotechnology Ignition Grant Scheme and BioNEST incubators.
• Policy Measures:
• National Biofuel Policy (2018): Promotes sustainable biofuel production. National Biopharma Mission: Aims to accelerate biopharma growth. National Mission on Bioeconomy: Focuses on enhancing the bio-economy sector.
• National Biofuel Policy (2018): Promotes sustainable biofuel production.
• National Biopharma Mission: Aims to accelerate biopharma growth.
• National Mission on Bioeconomy: Focuses on enhancing the bio-economy sector.
• BioRRAP: The Biological Research Regulatory Approval Portal (BioRRAP) serves as a single gateway for regulatory approvals in biological research, streamlining processes and boosting innovation.
Conclusion
Biotechnology is hailed as India’s sunshine sector, with a ripple effect on the economy. It has ushered the country into a new growth phase, globally recognizing its immense potential to impact and revolutionize lives.
Insta Links:
India’s Biotech Sector
Mains Links:
How can biotechnology help to improve the living standards of farmers? (UPSC 2019)