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Picture Courtesy: The Hindu

Context:

India’s biotechnology sector has grown rapidly in recent years, moving from around 500 startups in 2018 to over 10,000 in 2025. This growth is supported by a strong network of 94 incubators across 25 states, government initiatives, and rising investor confidence.

Current Status of Biotechnology in India:

• India’s bioeconomy was valued at approximately USD 165.7 billion in 2024, contributing about 25% to the national GDP (Source: BLS Times)
• The bioeconomy has nearly doubled in size from USD 86 billion in 2020 to USD 165.7 billion in 2024, reflecting an average annual growth rate of 9–10% (Source: BioSpectrum).
• India is home to over 10,000 biotechnology startups in 2025, a steep rise from only 50 startups in 2014 and 8,531 in 2023 (Source: Outlook Business (2025) and com)
• The government supports these ventures through 94 biotechnology incubators spread across 25 states, providing infrastructure, mentorship, and R&D facilities (Source: IBEF).
• The top five states leading in biotech startups are Maharashtra (1,421), Karnataka (1,054), Telangana (872), Delhi (875), and Uttar Pradesh (699), together accounting for nearly half of all biotech startups, (Source: BioSpectrum). 

Evolution of the Biotechnology industry in India:

Challenges of Biotechnology industry:

• Regulatory Delays and Fragmentation: India’s biotechnology sector faces lengthy approval timelines, with product launches taking 16–36 months due to multiple regulatory layers and slow ethical clearances (Source: BioPharm International, 2025). In contrast, countries like the United States and European Union have centralized, time-bound systems—for example, the US FDA’s Biologics License Application (BLA) process typically takes 10–12 months under a single agency. 

• Funding Constraints and Investment Gaps: Despite India’s bioeconomy reaching USD 165.7 billion in 2024, venture capital funding remains weak, dropping from USD 749 million in 2022 to USD 269 million in 2024 (Source: Business Today, 2025). By comparison, US biotech startups attracted over USD 30 billion in VC investments in 2023, while China mobilized more than USD 8 billion through government-led funds and state-backed accelerators. 

• Infrastructure Deficiencies: India’s 94 biotech incubators are unevenly distributed, with most located in southern states such as Karnataka, Telangana, and Tamil Nadu (IBEF, 2025). In contrast, the US and EU maintain integrated bio-clusters (like Boston-Cambridge and Berlin-Adlershof) that provide startups with access to end-to-end infrastructure. 

• Talent and Skill Gaps: While India produces over 250,000 life science graduates annually, there is a shortage of specialized skills in areas such as bioinformatics, molecular engineering, and synthetic biology. Countries like the US and Singapore attract global talent through research grants, postdoctoral fellowships, and industry–academia collaborations. 

• High R&D Costs and Long Development Cycles: Biotechnology R&D in India remains cost-intensive and slow-moving. The average clinical trial cost for a new biologic drug in India can reach USD 25–30 million, which is high relative to startup funding availability (Source: Ken Research, 2025). In contrast, China’s government offers up to 50% R&D cost reimbursement for high-priority biotech projects. 

• Fragmented Ecosystem and Lack of Coordination: The Indian biotech ecosystem is highly fragmented, with separate authorities overseeing pharmaceuticals, GM crops, and biologics, leading to overlap and inefficiency (Source: India Science and Technology Portal, 2025). By contrast, the EU’s European Medicines Agency (EMA) and US FDA offer centralized frameworks that enable uniform compliance and international recognition. 

Government Measures for Biotechnology Industry:

Way Forward:

• India’s bioeconomy rose from US$ 10 billion in 2014 to US$ 165.7 billion in 2024, growing at a CAGR of ~17.9% over the past four years. It is targeting US$ 300 billion by 2030. To meet such targets, the government needs to ensure increased public and private investment. (Source: ET Government) 

• The Health Ministry is proposing amendments to NDCT Rules, 2019 to reduce test license application timelines from 90 days to 45 days and simplify bioavailability / bioequivalence (BA/BE) procedures. (Source: BS) 

• Government has approved the BioE3 Policy (Biotechnology for Economy, Environment, Employment) as of August 2024, targeting high-performance biomanufacturing platforms, biofoundries, and biotech hubs. (Source: ET Government) 

• Biotech funding in India totalled US$ 1.9 billion over 465 deals between 2020-2024, with a peak of USD 749 million in 2022, but dropping to USD 268-269 million in 2024. To maintain high growth and reach USD 300 billion by 2030, India must promote blended finance, tax incentives, greater participation from institutional and foreign investors. (Source: BS) 

• India is undertaking projects like GenomeIndia, which aims to sequence genomes of 10,000 individuals from 99 population groups, to promote precision medicine & diagnostics tailored to Indian populations. 

• To avoid duplication, redundant regulatory overlaps (between ministries, etc.), improved coordination is vital. Industry reports call for a “fast-track cell” or service level agreements (SLAs) for reviews. 

Source: The Hindu