India's bio-agriculture sub-sector includes biotech seeds, such as Bt cotton.
Photo: Jörg Boethling
India’s bioeconomy in a global context – lessons for and from the World
By Bedanga Bordoloi
The Indian bioeconomy represents a powerful convergence of biotechnology, sustainability and economic growth, offering solutions to some of the most pressing local and global challenges. For India, a country with a vast agricultural base, a thriving pharmaceutical industry and a rapidly growing innovation ecosystem, the bioeconomy holds the promise of fostering self-reliance, enhancing rural livelihoods and driving green industrial transformation. According to industry reports, the sector is growing at a 14–16 per cent compound annual growth rate, largely driven by increased government support, innovation and private-sector participation.
Size and structure of the Indian bioeconomy
As per the India BioEconomy Report (2024), India's bioeconomy is valued at approximately 151 billion US dollars (USD). The Government of India expects the same to reach to 300 billion USD by the year 2030. The Indian bioeconomy spans several key sub-sectors: bio-pharma (62 %), bio-agriculture (16 %), bio-industrials (14 %) and bio-services (8%), reflecting their respective contribution to the economy.
The bio-pharma sector focuses on medicines, vaccines and biologics, with companies like Serum Institute of India (Pune) and Biocon (Bangalore) among others. The former is a vaccine manufacturer, while the latter develops biosimilars for diabetes and cancer treatment. The bio-agriculture sub-sector includes biotech seeds (e.g. Mahyco, producing Bt cotton), biofertilisers and biopesticides producers (e.g. IPL Biologicals, producing both biofertilisers and biopesticides for organic farming). The bio-industrials sector covers biofuels, enzymes and biodegradable materials. Examples are Praj Industries, which produces bioethanol from sugarcane and agri-waste, and Novozymes India, known for industrial enzymes used in food, textiles and detergents. And finally, there is the bio-services sector (with firms like Syngene International or GVK Biosciences), which supports contract research for global pharmaceutical companies, drug discovery and clinical research.
Together, these sub-sectors drive India's growing bioeconomy by integrating innovation, sustainability and commercialisation.
The key sub-sector movers include rapid growth in vaccine production, biofertilisers, synthetic biology, and biofuels. Obstacles to developments above all include regulatory hurdles, limited R&D funding and infrastructure gaps for scaling up biotech innovations.
Enterprise clusters in India’s bioeconomy
India’s bioeconomy activities are spread across 90 cities in various states. Seven main bio-clusters contribute towards the Indian bioeconomy. A bio-cluster can be defined as a geographic region or state where multiple bio-based companies, research institutions, universities and startups are concentrated, creating a hub for innovation, collaboration and investment. These clusters provide access to shared infrastructure, skilled talent, funding and regulatory support, making it easier for biotech businesses to grow. For example, clusters like Bangalore, Hyderabad, Pune, Delhi-NCR and Mumbai host biotech parks, incubators and R&D centres, attracting domestic and foreign investment. Emerging hubs include Chennai, Ahmedabad, and Kolkata. Genome Valley in Hyderabad is home to 200+ biotech companies, while Bangalore has India's largest number of biotech startups. Biotech parks such as Genome Valley (Hyderabad), TICEL Biotech Park (Tamil Nadu) and Biotech Park Lucknow support startups and large enterprises.
Socio-economic performance and small and medium enterprise (SME) participation
SMEs contribute significantly to sub-sectors like bio-agriculture, biopharmaceuticals and bio-industrials. Government-backed initiatives provide financial and technical support. Examples include Biotechnology Industry Research Assistance Council (BIRAC), which is a government agency that funds biotech startups, provides them with mentorship and helps them scale their innovations. It has supported over 1,500 startups and 70+ incubators, created 60+ biotech products and generated 250+ IPs. Startup India is a national initiative that offers tax benefits, easier funding and business support for startups, including those in biotechnology. National Biopharma Mission (NBM), with a budget of 15 billion rupees, has strengthened biopharma R&D, leading to 6+ vaccine candidates and 10+ biotherapeutics in development.
National and regional clusters, new initiatives and networks
Recent initiatives like Bioincubators Nurturing Entrepreneurship for Scaling Technologies (BioNEST) and DBT's Biotechnology Parks Scheme aim to strengthen local ecosystems. The former supports biotech startups with incubation space, funding, and mentorship. By 2024, 73+ BioNEST incubators were spanning 868,470 square feet, aiding over 1,200 startups in biopharma, agri-tech, and industrial biotech. The DBT Biotechnology Parks Scheme builds biotech hubs offering infrastructure and research facilities. These initiatives attract foreign investment and accelerate biotech commercialisation in India.
Manufacturing parks and investment promotion
New biotech parks in Gujarat, Telangana, and Tamil Nadu are attracting foreign investments. India received over ten billion USD in foreign direct investment (FDI) in biotechnology from 2015–2023. States like Karnataka, Telangana and Maharashtra lead in biotech investments. In fact, government and private sector investments in biotech startups exceeded two billion USD in 2023. Significant capital inflow has been observed into gene editing, biosimilars and synthetic biology.
Another trend worth noting is the increased biological manufacturing capacity with new vaccine and monoclonal antibody production. Additionally, new biotech innovations in plant-based proteins, bio-based plastics and CRISPR-based gene therapies are observed.
Global comparisons – what India can learn from the European Union and others
While India's bioeconomy is expanding, lessons from structured bioeconomy policies and strategies from other global leaders provide key insights:
Policy integration and governance (EU Model)
The EU Bioeconomy Strategy (2018) integrates agriculture, waste management and industrial policy to create a circular bioeconomy. India’s BioE3 (Biotechnology for Employment, Economy & Environment) Policy, approved in 2024, seeks to achieve a similar integration by aligning biotechnology with agriculture, energy and health. It aims to accelerate innovation-driven research and entrepreneurship in high-performance biomanufacturing. India aims at promoting a circular bioeconomy that hinges on waste materials, value added bio-materials and microbial factories. The focus should now be on effective implementation, ensuring cross-sectoral coordination and scaling bio-based innovations for sustainable growth.
Sustainable innovation and green transitions (Nordic Countries)
Countries like Finland and Sweden lead in bio-based materials and bio-refining.India has invested over 50 billion rupees (600 million USD) in biorefineries to convert rice straw and crop residue into biofuels and bioplastics, with projects like IOC's nine billion rupees (110 million USD) Panipat 2G Ethanol Plant (2022) and HPCL's six billion rupees (72 million USD) Bathinda Biorefinery. Emerging initiatives, such as Praj Industries' three billion rupees (36 million USD) bio-based chemicals investment and IIT Guwahati's biodegradable plastics research (2023), show growing progress. However, to match advanced biorefineries, India needs at least 200 billion rupees (2.4 billion USD) in additional investments, along with stronger public-private partnerships and policy support.
Funding and market development (USA and EU)
The EU and USA offer significant public-private funding mechanisms for bio-innovations. India can further strengthen funding through green bonds, blended finance and public-private partnerships.
Circular bioeconomy and waste utilisation (Germany and the Netherlands)
Germany's Bioeconomy Council promotes the use of food and agricultural waste in biomanufacturing. India can scale up circular bioeconomy projects, such as waste-to-energy initiatives under the GOBARdhan scheme. The GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) Scheme is an initiative by the Government of India to promote a circular bioeconomy by converting organic waste into valuable resources like biogas, biofertilisers and bio-energy. Over 1,200 biogas plants have been set up under the scheme.
What the world can learn from India
Affordable and scalable bio-Innovation
India's low-cost vaccine production and affordable biosimilars provide a model for making bioeconomy solutions accessible world-wide. Indian companies have demonstrated the ability to scale biopharmaceutical production at reduced costs. Companies make biosimilars for diseases like cancer, diabetes and arthritis. Some well-known examples are Trastuzumab (a breast cancer drug), Adalimumab (used for arthritis) and Bevacizumab (for various cancers). These medicines cost 30–80 per cent less than their original versions and are exported to many countries, making important treatments more affordable world-wide.
Community-led bioeconomy and inclusivity
Various community-led circular bioeconomy models like household biogas units that transform livestock waste into clean cooking fuel, biochar processing and Black Soldier Fly (BSF) larvae-based waste management are transforming the way communities perceive and utilise waste while also empowering youth from diverse backgrounds and with visions for circularity and entrepreneurship.
Grassroots bioeconomy innovations
India has successfully leveraged traditional knowledge and indigenous bio-based solutions. The use of biopesticides and microbial fertilisers in organic farming has gained traction in states like Sikkim and Andhra Pradesh.
Aligning with G20 Principles on Bioeconomy
India's bioeconomy aligns with several G20 High-Level Principles on Bioeconomy, including leveraging science, technology and innovation, promoting sustainable use of biodiversity and enhancing the role of the bioeconomy in sustainable development. Further, India is focusing bio-based remediation of emerging pollutants like microplastics, xenobiotics, and degraded ecosystem restoration. Additional efforts are observed around bioremediation technologies, biodegradation of pesticide residues, conservation of biodiversity and developing technologies for monitoring and mitigation of environmental pollutants and to develop the sustainable materials. India’s integration of bioprospecting and biodiversity-based solutions ensures sustainable use of resources.
Conclusion and way forward
India's bioeconomy presents a transformative opportunity for rural development and the agricultural sector by enhancing value addition, sustainability and economic resilience. The expansion of bio-based industries, including biofertilisers, biopesticides and bioenergy solutions, can create new revenue streams for farmers while reducing dependence on chemical inputs. Strengthening rural biotechnology infrastructure, such as biomanufacturing clusters and agri-bio incubators, will further boost innovation and employment opportunities in villages. Moreover, integrating smallholder farmers and women entrepreneurs into the bioeconomy through capacity-building programmes and financial inclusion initiatives will ensure equitable growth. As India progresses towards its 300 billion USD bioeconomy target by 2030, fostering collaboration between policy-makers, industry stakeholders and rural communities will be crucial in driving a sustainable and inclusive bioeconomy that benefits both agriculture and rural livelihoods. India plans to accelerate through international collaboration, inter-ministerial coordination and public-private Partnerships (PPP). Appropriate regulatory reforms and compelling incentives will reduce timelines of development and commercialisation.
Bedanga Bordoloi is a strategy and sustainability expert with 16+ years of global experience in bioeconomy, ESG, agribusiness, and climate finance. He has advised governments, Fortune 500 firms, and global organisations on climate-smart business models, regenerative agriculture, and circular economy strategies. A former Supreme Court of India-appointed expert, he led major land restoration and ESG initiatives with IDH, EY, World Bank, IFAD, and Novozymes. A PMP and GRI Trainer, he drives bioeconomy innovation and impact investment.
Contact: bedangamanage07(at)gmail.com
References:
Department of Biotechnology, Government of India, 2023. Annual Biotechnology Report 2023.
Biotechnology Industry Research Assistance Council (BIRAC), 2023. Annual Report 2022–23.
OECD, 2022. Bioeconomy Outlook 2022.
World Bank, 2023. Toward a Circular Bioeconomy: Emerging Opportunities and Policy Pathways.
Previous article
Add a comment
Be the First to Comment