Why in news?

The India BioEconomy Report 2024, released by the Department of Biotechnology, estimates India's bioeconomy to be worth over $165 billion, contributing 4.2% of GDP.

The report highlights significant growth potential, projecting the sector to reach $300 billion by 2030 and $1 trillion by 2047.

What’s in Today’s Article?

• Bioeconomy
• Growing Footprint of India's Bioeconomy
• BioE3 Policy: Boosting India's Bioeconomy
• Other Initiatives & Policy Push
• Challenges and Way Forward

Bioeconomy

• It refers to the industrial use of biological resources (plants, animals, microorganisms) and natural biological processes for producing goods and services.
• Traditional and Expanding Applications
  • Biological resources have long been used in healthcare, pharmaceuticals, and agriculture.
  • Their use is now expanding to fuels, textiles, plastics, construction materials, and chemicals due to their renewability, cost-effectiveness, and sustainability.
• Sustainable Alternatives
  • Ethanol, produced via fermentation of sugarcane or corn, is replacing hydrocarbon-based fuels.
  • Biotechnology enables biomedicines and synthetic biology, allowing the design of microorganisms with specific traits.
• Scope for Rapid Growth
  • The economic use of biological resources is still in its early stages but has vast untapped potential.
  • With advancements in biotechnology and sustainability, the bioeconomy is expanding rapidly.

Growing Footprint of India's Bioeconomy

• India’s bioeconomy nearly doubled in five years, from $86 billion (2020) to $165 billion (2024).
  • Growth has surpassed the initial target of $150 billion by 2025.
• The number of bioeconomy companies increased by 90%, from 5,365 (2021) to 10,075 (2024), and is projected to double by 2030, creating 35 million jobs.
• Sector-wise Contributions
  • The sector now contributes 4.25% to GDP with a CAGR of 17.9% in the last four years.
  • Industrial sector (biofuels, bioplastics) contributed $78 billion (~47%).
  • Pharma sector contributed 35%, with vaccines as the key driver.
  • Fastest-growing segment (2024): Research & IT, including biotech software, clinical trials, and bioinformatics.
• Regional Disparities
  • Five states (Maharashtra, Karnataka, Telangana, Gujarat, Andhra Pradesh) generated over two-thirds of bioeconomy value.
  • Eastern & Northeastern regions contributed less than 6%.
• Challenges & Future Prospects
  • Sustaining high growth will require innovation, scaling-up incentives, and policy reforms.
  • Addressing regional imbalances is crucial.
  • While India’s bioeconomy (4.2% of GDP) is comparable to China & the US, it lags behind Spain & Italy (20% of GDP).

BioE3 Policy: Boosting India's Bioeconomy

• Launched in 2024, the BioE3 policy (Biotechnology for Economy, Environment, and Employment) aims to make India a global hub for bio-manufacturing and R&D in biotechnology.
• Key Objectives
  • Strengthen bio-manufacturing in areas like:
    • Bio-based chemicals & enzymes
    • Functional foods & precision biotherapeutics
    • Marine & space biotechnology
    • Climate-resilient agriculture
  • Foster a network of universities, research institutions, start-ups, and industries.
• Implementation
  • Assam became the first state to adopt the BioE3 framework, signaling nationwide expansion.
  • New initiatives include Bio-AI Hubs, Bio Foundries, and Bio-Enabler Hubs for integrating advanced tech into biomanufacturing.
  • Address policy bottlenecks to unlock the sector’s full potential.

Other Initiatives & Policy Push

• New initiatives include Bio-AI Hubs, Bio Foundries, and Bio-Enabler Hubs for integrating advanced tech into biomanufacturing.
• Boosting Startups & Innovation
  • India's biotech startups grew from 50 in 2014 to over 10,075 in 2024.
  • The BioSaarthi mentorship program was launched to support startups with global mentorship, leveraging Indian diaspora expertise.
  • Public-private partnerships have fueled sectoral expansion and innovation.
• Breakthroughs in Biotechnology
  • Development of Nafithromycin, India’s first indigenous antibiotic for respiratory diseases.
  • Successful gene therapy trials for hemophilia.
  • Completion of India’s whole genome sequencing project, mapping 10,074 individuals across 99 communities to revolutionize precision medicine.
• Space Biotechnology & Future Prospects
  • Collaboration between the Department of Biotechnology and ISRO to advance space biology and medicine.
  • Biotechnology will play a key role in astronaut health and space research as India prepares for its first space station.
• R&D Investment Surge
  • India's Gross Expenditure on R&D (GERD) doubled, from ₹60,196 crore in 2013-14 to ₹1,27,381 crore in 2024.
  • This funding push underscores the government’s commitment to scientific research and innovation.

Challenges and Way Forward

• India has strong existing capabilities in some biotech fields, making commercialization easier.
• However, regulatory challenges remain, especially in genetically modified (GM) crops, which could enhance agricultural productivity.
• Recommendations for Future Growth
  • Establish a National BioEconomy Mission.
  • Implement single-window regulatory mechanisms to streamline biotech innovations.