Biotech needs to build upon gains

Over the past decade, India’s bioeconomy has undergone a remarkable transformation, expanding from just USD 10 billion in 2014 to USD 165.7 billion in 2024. Today, it contributes roughly 4–4.25% of GDP—depending on the benchmark used. By 2030, policymakers have set a target of USD 300 billion—an ambitious goal that positions biotechnology at the heart of India’s economic and environmental strategy. Yet beneath the celebratory figures lie more sobering questions: can India’s policy frameworks, infrastructure, and regulatory mechanisms keep pace with the breakneck speed of expansion? And can it translate scale into sustainable depth?

The trajectory is impressive—spanning biofuels, vaccines, agricultural biotech, and research services—but the growth is uneven. Karnataka, Telangana, and Maharashtra dominate, while other regions remain peripheral. Globally, competition is intensifying, with the US, EU, and China investing heavily in biomanufacturing. India’s cost advantage and innovation capacity will be tested in the years to come. In short, India has earned recognition as a global bioeconomy contender. The next phase, however, will depend on whether it can overcome structural hurdles such as public skepticism around GM crops, gaps in advanced infrastructure, and weak intellectual property frameworks.

The bioeconomy, broadly defined, is the use of renewable resources—plants, animals, and microorganisms—to produce food, materials, and energy. More than a sector, it is a paradigm shift, promising to cut emissions, reduce fossil fuel dependence, and align growth with sustainability. For India, it offers a unique chance to address domestic challenges of food security, energy independence, and climate change while simultaneously positioning itself as a global supplier of affordable, biotech-led solutions.

India’s rise as a bioeconomy powerhouse is powered by four major subsectors. The bioindustrial segment, at USD 78.2 billion in 2024, includes biofuels, bioplastics, and green chemicals. India’s achievement of 20% ethanol blending in 2025, five years ahead of the original 2030 target, was a milestone that improved farmer incomes and is expected to save about `43,000 crore in foreign exchange in 2025 alone; cumulatively since 2014–15, forex savings amount to `1.44 lakh crore. The biopharma segment, valued at USD 58.4 billion, is central to India’s role as a global vaccine hub. According to government estimates, Serum Institute’s market share rose to 24% in 2024, underscoring the sector’s reach and reliability. Bioagri, at USD 13.5 billion, drives precision farming and sustainable inputs. Bt cotton and the adoption of biofertilizers exemplify how biotech can raise yields while conserving resources. Finally, bio-research and bioIT, at USD 15.6 billion, leverage India’s strengths in data, clinical trials, and software, positioning the country as a cost-effective global hub for R&D services. Together, these pillars demonstrate India’s capacity to integrate healthcare, agriculture, and industry into a holistic bioeconomy framework.

The bioeconomy is not just about growth—it is also central to climate action. Ethanol blending, carbon capture, marine biotechnology, and smart proteins all reduce emissions and fossil fuel reliance. These initiatives directly support India’s 2070 net-zero commitment. But there is also a geopolitical angle. As global supply chains decouple, and countries look for alternatives to petrochemicals, India has the chance to emerge as a green manufacturing hub for the Global South and beyond. If it leverages this moment, the bioeconomy could become both an export strategy and a diplomatic asset.

Maharashtra, Karnataka, and Telangana together account for more than half of the national bioeconomy. The southern region leads with nearly 45% of total value, while the north and east lag behind. This concentration of excellence—in Hyderabad’s vaccine ecosystem, Bengaluru’s bioinformatics base, and Pune’s industrial biotech hubs—illustrates the benefits of clustering. Yet it also highlights inequality. Unless the ecosystem broadens geographically, India risks limiting participation to a handful of states, missing opportunities for nationwide development. 

Launched in 2024, the BioE³ Policy (Biotechnology for Economy, Environment, and Employment) marks a critical pivot. By fostering 21 BioEnabler facilities nationwide, India is creating shared infrastructure for startups, SMEs, and universities. Areas of focus include microbial biomanufacturing, smart proteins, functional foods, and next-generation therapies. The National Biofoundry Network, formally launched in late August 2025, further consolidates this push. This framework is designed to move India from a consumer of global biotech to a creator of standards. If successful, it could catalyze a shift from extractive manufacturing to regenerative, circular systems—aligning growth with sustainability. But success depends on execution: shared infrastructure must be accessible, funding consistent, and IP frameworks robust.

India’s demographic dividend doubles as a biotech dividend. The BioE³ Challenge for Youth, launched in 2025, is designed to transform classrooms into innovation hubs by rewarding student-led biotech solutions. Meanwhile, the startup ecosystem has surged from 5,365 firms in 2021 to more than 10,000 by early 2025, with some estimates citing as many as 13,000 by mid-year. 

Several achievements illustrate India’s momentum. Indian firms now supply around 40% of WHO vaccine purchases, underscoring their centrality to global health. Achieving 20% ethanol blending five years ahead of schedule demonstrates India’s ability to meet ambitious sustainability targets. Advances such as Nafithromycin, approved by India’s regulator in January 2025, and CAR T-cell therapies like NexCAR19, approved in 2023, reflect a shift toward personalized care. The growth of thousands of biotech startups highlights innovation depth, though investment gaps persist. These milestones reflect structural change rather than isolated success stories, signaling India’s emergence as a biotech innovator. Globally, the bioeconomy is projected to reach USD 30 trillion by 2050, about 12% of world GDP. India’s contribution could range between USD 1.4 trillion and USD 2.7 trillion, representing 6.5%–12% of its GDP. This represents more than an economic opportunity. A thriving bioeconomy could create millions of jobs, reduce dependence on imported fuels and chemicals, and position India at the nexus of climate action and growth. Few economies can simultaneously claim such economic, environmental, and geopolitical significance.

India’s bioeconomy journey is a story of ambition and resilience. It has leapt from USD 10 billion to USD 165.7 billion in a decade, making vaccines for the world, blending ethanol ahead of schedule, and seeding a vibrant startup ecosystem. But the next phase will be more demanding. To reach USD 300 billion by 2030 and potentially USD 2.7 trillion by 2050, India must confront its structural hurdles head-on. The key lies in balance: speed with sustainability, innovation with inclusivity, and domestic imperatives with global responsibilities.