The world is at the cusp of a new industrial revolution driven by bio-innovation. Among emerging economies, India’s Bioeconomy represents a remarkable journey of innovation, growth, and increasing global influence. Over the past decade, India’s Bioeconomy has grown significantly from $10 billion in 2014 to $151 billion by the end of 2023. With the launch of ambitious BioE3 (Biotechnology for Economy, Environment and Employment), India is expected to reach $300 billion by 2030, marking a crucial step in economic transformation and positioning India as a global biotech leader.

As per Food and Agriculture Organization (FAO), Bioeconomy is defined as production, utilization, conservation, and regeneration of biological resources, including related knowledge, science, technology, and innovation, to provide sustainable solutions (information, products, processes and services) within and across all economic sectors and enable transformation to sustainable economy. 

Bioeconomy spans several key subsectors, each contributing significantly to national growth through biotechnology. 

• BioIndustrial: This emerging sector deals with biobased chemicals and products created using enzymes, biosynthetic processes, and recombinant DNA technology. It includes bioplastics, biogas, and enzymatic applications across industries. 
  • Biomanufacturing: The production arm of biotechnology industry, it refers to the use of engineered microbial, plant, and animal (including human) cells with increasing precision and control to produce commercially important products on scale. 
• BioPharma and BioMedical: It includes development of pharmaceuticals, medical devices, diagnostics, and lab-grown organoids.
  • It focuses on areas like cancer immunotherapy, gene editing, precision medicine, and biologics, encompassing MedTech and diagnostics.
• BioAgri: Focusing on agricultural biotechnology, it covers genetically modified crops and animals, precision agriculture, and bio-based products. 
  • E.g., Bt Cotton highlights biotech’s role in boosting agricultural yields and sustainability.
• BioResearch and BioIT (BioServices): It involves contract research, clinical trials, biotech software and databases, specialized equipment, and bioscience education services.

Over the past decade, India’s Bioeconomy has emerged as a significant force, driven by key sectors such as vaccines, bio-therapeutics, bioethanol, etc. The sector’s progress underscores its vital role in promoting sustainable development and enhancing resilience in key areas like healthcare, agriculture etc.

• Economic Growth: Bioeconomy can contribute to India's economic growth by creating new industries, businesses, and job opportunities in sectors like agriculture, pharmaceutical, and diversify India's economic base.
  • By 2050, the global BioEconomy is expected to expand significantly, contributing $30 trillion to the world economy (from growing $4 trillion), representing nearly 12% of the projected global GDP.
• Food Security: It can enhance India's food security by improving agricultural productivity and soil health, developing nutritious, climate-resilient crops, through innovative biotechnologies farmers and biological alternatives like Biofertilizers.
  • E.g. GM technology has increased crop yields by 21% and Golden rice can aid in combating Vitamin-A deficiency.
• Healthcare: Advancements in bioeconomy can lead to development of new drugs, vaccines, etc., and enhance accessibility and affordability of healthcare, thus improving health outcomes. For example-
  • Serum Institute of India, launched India’s first indigenously developed Quadrivalent Human Papillomavirus (qHPV) vaccine, CERVAVAC, marking a significant milestone in women’s well-being.
  • India’s first gene therapy clinical trial for Hemophilia A was approved advancing the treatment of genetic blood disorders.
• Employment opportunities: Bioeconomy can drive job creation in India especially in sectors like biopharmaceuticals, bioenergy etc., and foster entrepreneurship in tier-2 and 3 cities through development of bio-manufacturing hubs.
  • BioEconomy is projected to create 35 million jobs by 2030.
• Bio startups: India’s bioeconomy will play an important role in fostering a vibrant startup ecosystem.
  • The number of biotech startups in India is expected to surge from 8,531 in 2023 to 35,460 by 2030.
• Exports: India is one of the biggest suppliers of low-cost drugs and vaccines in the world, further growth in biologics and bio-similar industry can boost growth in India’s exports.
  • E.g., Indian manufacturers supplied 25% of total vaccine volumes purchased by World Health Organisation (WHO).
• Environmental benefits:
  • Promoting Circular economy: Bioeconomy focuses on minimizing waste and maximizing resource efficiency through closed loop production and consumption. 
    • For example, agricultural waste can be converted into biogas (anaerobic digestion), with remnants used as a nutrient-rich fertilizer, reducing waste, and promoting reuse. 
  • Lowering environmental pollution: Bioeconomy products, such as biofertilizers, biopesticides etc. reduce harmful chemicals in the environment and improve ecosystem health. 
  • Conservation of biodiversity: Bioeconomy can harness traditional and Indigenous knowledge and use latest advances in biosciences and innovation, including DNA sequencing, to enhance biodiversity knowledge and conservation.
    • E.g., Environmental DNA, was used by the World Wildlife Fund (WWF) in Peru in 2018 for biodiversity discovery and conservation. 
  • Eco-restoration: Bioremediation can be used to restore polluted soils, wetlands and freshwater ecosystems.
    • E.g., TERI's Oilzapper technology uses naturally occurring microorganisms to transform hydrocarbon contaminants in soil to non-toxic compounds.
  • Biologizing industries: Biological resources can replace petrochemical-based energy sources and chemicals with biologically derived alternatives.
    • E.g., Modifying lignin in trees using CRISPR could provide eco-friendly alternatives to producing industrial chemicals, traditionally made from petroleum.
  • Climate action: Bioeconomy can reduce India's carbon footprint and help meet climate goals like 45% reduction in emission intensity by 2030 and achieving net zero by 2070.

India has embarked on a series of transformative policy reforms with focus on biotechnology, sustainable agriculture, biofuels, healthcare, and environmental sustainability to boost its Bioeconomy. Some of major steps are as follows:

Policy making

• BioE3 (Biotechnology for Economy, Environment and Employment) Policy: Implemented by Department of Biotechnology (DBT), it sets forth a framework for ‘Fostering High Performance Biomanufacturing’.

• Sector specific Policy Initiatives:
  • National Mission on Bioeconomy, 2016: Launched by the Institute of Bio-resources and Sustainable Development (under Ministry of Science and Technology) to boost rural economy by utilising bio-resources. 
  • Draft National Biotechnology Development Strategy (2020-2025): To make India globally competitive in biotechnology research, innovation, translation, entrepreneurship and industrial growth and be a USD 150 billion Bioeconomy by 2025.
  • Other policies: National Medical Device Policy, 2023; National Policy on Biofuels, 2018 etc.

Schemes and initiatives

• For promoting innovation: Biotechnology Research Innovation and Entrepreneurship Development (Bio- RIDE) Scheme; Biotech Science Clusters etc.
• Global Biofuel Alliance: Led by India, Brazil, and United States, it presents an opportunity for India to reduce costly oil imports, boost domestic biofuel production, and enhance economic stability.
• Sector specific schemes: National Biopharma Mission; Production Linked Incentive (PLI) Scheme for Pharmaceuticals; National Green Hydrogen Mission; PM-JIVAN Yojna, SATAT, and GOBARdhan scheme etc.

Governance and Regulatory Initiatives

• Biotechnology Research and Innovation Council (BRIC): It aims to streamline governance and amplify the impact of biotech research across the nation. It has established various industry focused schemes like-
  • Biotechnology Ignition Grant Scheme, an early stage biotech funding programme in India.
  • Bioincubators Nurturing Entrepreneurship for Scaling Technologies (BioNEST) to create globally competent bioincubation facilities across country. 
  • Small Business Innovation Research Initiative (SBIRI) and Biotechnology Industry Partnership Program (BIPP): To enhance R&D capabilities for biotechnological product and technology development.
• Biological Research Regulatory Approval Portal (BioRRAP): It simplifies the approval process for biological research. 
• Intellectual Property (IP) Guidelines, 2023: DBT introduced new IP guidelines to improve commercialization of public-funded research.
• Guidelines for Genetically Engineered Insects, 2023:  It ensures stringent biosafety measures while maximizing the benefits of genetic engineering.

Regional initiatives 

• Uttar Pradesh Pharmaceutical and Medical Devices Industry Policy 2023: Aims to streamline regulatory processes and attract investments
• Tamil Nadu’s Ethanol Blending Policy: Aligned with National Biofuels Policy’s vision of achieving 20% ethanol blending by 2025, Tamil Nadu aims to leverage its agricultural abundance to bolster ethanol production.

Building a bio-economy encompasses various challenges spanning across policy, infrastructure, technological development, and socio-economic factors-

• Regulatory: The regulatory landscape in India is often fragmented, e.g. different agencies (DBT, FSSAI, etc.) have overlapping roles, leading to delays and confusion.
  • For instance, the approval process for genetically modified crops in India has been controversial and time-consuming, as seen with the case of Bt Brinjal.
  • Also, complex and varying regulations across different Indian states create operational hurdles.
• Funding issues: High upfront costs and long timelines for returns on bio-economy projects (e.g., bio-plastics, biofuels) make it difficult for start-ups and even established companies to secure sustained investment. 
  • Further, the return on investment in biotech can be uncertain deterring private investors. 
• IP protection issues: Securing intellectual property rights for innovations in biotechnology is complex, challenging, and slow-moving, discouraging innovation in bio-economy sectors. Further, Section 3(d) of Patent Act hinders foreign direct investment in biotech sector in India.
• Bio-piracy concerns: India’s rich biodiversity makes it a hotspot for bio-piracy, where foreign companies exploit indigenous biological resources without proper benefit-sharing. 
  • For example, US Patent and Trademark Office granted a patent after turmeric.
• Limited Scalability: Limited capacity in India to transform research leads into commercial products due to limited academia-industry linkages is one of the critical barriers to translational research. 
• Supply chain issues: India's biotechnology sector remains dependent on global supply chains for essential raw materials, equipment, and advanced technologies. 
  • Further, availability of feedstock like agricultural residues can be unreliable due to climatic conditions, land-use patterns, and competing demands (e.g., for food or fodder).
• Competition: India's bio-economy sector biotech lacks scientific research and innovation in areas like synthetic biology, bioinformatics, and enzyme technology. 
  • Also, India faces stiff competition from countries (US, China, South Korea) with advanced biotech sectors impacting investment flows.
• Impact on biodiversity: Overexploitation of biological resources and transboundary movement of bio-based products can lead to depletion of species and introduction of invasive alien species. 
  • Further, developing new bio-based products requires extensive utilization of genetic resources, such as crops and livestock, resulting in loss of genetic diversity.
• Impact on land use: Bio-economic activities like production and consumption can lead to land use changes. For example-
  • Expansion of agricultural land to grow biofuel crops, such as corn and sugar cane for bioethanol.
  • Building bio-refineries in rural areas to convert agricultural residues into bio-based chemicals leads to decrease in area under cultivation.
• Skill gaps: India faces a shortage of professionals trained in bioengineering, molecular biology, genomics, and other high-tech fields, further exacerbated by gap in academia-industry partnership. 
• Climate change: Bioeconomy is threatened by climate risks, both sudden events like hurricanes and floods, and slow-onset changes such as shifting precipitation patterns.
• Public perception: Public scepticism about Genetically Modified Organisms (GMOs) and other bio-based innovations, such as lab-grown food or biofuels, can hinder the adoption of bio-economy products.
  • For instance, there has been significant public opposition to GM crops in India, leading to moratoriums on some GM food crops.

To ensure that the benefits of biotechnology are maximised while minimising potential harms, careful planning, significant investment, strong regulatory frameworks, and active engagement with all stakeholders is required.

• Updating regulatory frameworks: Strategic reforms, harmonized with regulatory reforms and global standards, can help in facilitating production and commercialization of novel bio-based products. 
  • To identify regulatory challenges and derive potential solutions, proactive engagement is needed with all stakeholders. 
  • Further, ensuring sustainability requires responsible land-use planning. 
• International collaboration: Foster partnerships with global biotech hubs and companies to access expertise, and markets. 
  • For example, National Centre for Biotechnology Information can collaborate with European Molecular Biology Laboratory, DNA Data Bank of Japan to highlight strengths of Indian biotech sector on global platforms.
• Public-private partnerships: Encourage collaboration between government, academic institutions, and private companies to enhance and diversify sources of funding. For example, US Small Business Innovation Research program to fund collaborative biotech projects.
• New Partnership Centres for Research (PaCeR): They can be established for augmenting and strengthening institutional research capacity in areas of life sciences/biotechnology.
  • This will boost research quality, aid in building cross disciplines linkages to evolve robust interdisciplinary research programs.
• Promoting start-ups: Supporting Start-ups to propel their technology from proof of concept to manufacturing, and create bio-innovation hubs to facilitate networking, knowledge-sharing, and access to funding.
  • Enhanced focus on new and emerging areas and priority areas like Precision Medicine, CAR-T technology, Gene editing and therapy, etc. can help prepare for future technologies.
• Enhance IP protection: Strengthen IP laws and their enforcement to encourage innovation and attract investment. Set up single window clearance system for patent approvals and specialized IP courts to fast-track biotech patent disputes.
• Encourage Sustainable Bioeconomy: There is need for more intergovernmental cooperation and coordination to promote a sustainable bioeconomy and establish globally accepted sustainability criteria for the bioeconomy that are closely aligned with the Sustainable Development Goals (SDGs). (refer to Figure 5.1.)

• Skill development: Invest in training and education programs to develop a skilled workforce, ensuring quality at par with global standards, integrate bio-economy-focused courses into university curriculums, to develop skilled workforce.
• Rural bio-entrepreneurship: Encourage rural bio-entrepreneurship and scale grassroots innovations by demonstrating viable, eco-friendly technologies for holistic, sustainable adoption. 
  • Foster scientist-farmer partnerships through participatory research, linking labs with farms to develop innovative agricultural solutions.
• Public trust: Shift to data-driven communication, engaging SHGs, citizens, etc. to build public trust and boost acceptance of biotechnology solutions and foster development at grass root level.
• Promoting Socio bioeconomy: Socio-bioeconomy offers opportunities for generating innovative products, promoting sustainable economic growth and preserving biological, cultural and social diversity.

Bioeconomy holds the potential for sustainable growth by harnessing biological resources to address environmental, economic, and social challenges. While its potential is vast, challenges like resource scarcity, technological gaps, and policy alignment need to be addressed. Moving forward, a collaborative approach involving innovation, strong governance, and sustainable practices is essential to fully realize the bio-economy's benefits, ensuring a greener and more resilient future. It will help build a more prosperous, equitable, and sustainable development for current and future generations and achieve the target of Viksit Bharat by 2047.