India’s Bioeconomy: Growth and Future Prospects

Context:

Published on March 26, 2025, in The Indian Express, this article analyzes the India BioEconomy Report 2024 by the Department of Biotechnology. It details the sector’s rise from $165 billion in 2024 to a projected $300 billion by 2030, highlighting its economic contributions, policy drivers, and challenges ahead as of March 27, 2025.

Key Information Points:

• Current Valuation: India’s bioeconomy reached $165 billion in 2024, up from $86 billion in 2020, contributing 4.2% to GDP, comparable to the U.S. and China.
• Growth Trajectory: Nearly doubled in five years, with a potential to hit $300 billion by 2030 and $1 trillion by 2047, per the India BioEconomy Report 2024.
• Company Surge: Biotech firms grew from 5,365 in 2021 to 10,075 in 2024, a 90% rise, projected to double again by 2030, employing 35 million people.
• Sector Breakdown: Industrial bioeconomy (e.g., biofuels, bioplastics) contributed $78 billion, pharma (vaccines-led) 35%, with agriculture and other areas making up the rest.
• Global Comparison: Spain and Italy’s bioeconomies exceed 20% of GDP, indicating India’s scope for growth in biotech applications.
• BioE3 Policy: Launched in 2024, the Biotechnology for Economy, Environment, and Employment (BioE3) policy aims to make India a global bio-manufacturing hub and R&D center.
• Policy Goals: BioE3 targets bio-based chemicals, enzymes, functional foods, precision biotherapeutics, marine/space biotech, and climate-resilient agriculture.
• Strengths: India’s existing capabilities in vaccines and biopharma provide a foundation for scalable, commercial biotech products.
• Project Pipeline: Initial BioE3 project proposals are under review, signaling active implementation.
• Regulatory Hurdles: Reluctance to adopt genetically modified (GM) crops limits agricultural biotech growth, despite potential yield benefits.
• Report Recommendations: Advocates a National BioEconomy Mission and single-window clearance for biotech innovations to streamline regulations.
• Sustainability Edge: Bioresources (plants, microorganisms) are renewable, cost-effective, and eco-friendly, unlike fossil fuels, driving sustainable growth.
• Challenges Ahead: Addressing regulatory uncertainty, scaling infrastructure, and boosting R&D investment are critical for the $300 billion target.

Key Terms:

• Bioeconomy: Industrial use of renewable biological resources for goods and services.
• BioE3 Policy: 2024 initiative to position India as a biotech leader in manufacturing and R&D.
• Biotech Startups: Emerging firms driving innovation in India’s bioeconomy.
• Genetically Modified (GM) Crops: Altered plants for enhanced productivity, facing regulatory delays.
• National BioEconomy Mission: Proposed framework to coordinate and accelerate biotech growth.
• Single-Window Clearance: Streamlined approval process for biotech innovations.
• Climate-Resilient Agriculture: Farming adapted to withstand climate challenges using biotech.

Link To The Original Article – https://indianexpress.com/article/explained/explained-economics/how-indias-bioeconomy-is-faring-the-road-ahead-9908163/