India’s Bio-Economy Soars 16-Fold in a Decade, Reaching $165.7 Billion in 2024

27 Mar India’s Bio-Economy Soars 16-Fold in a Decade, Reaching $165.7 Billion in 2024

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GS-3- Indian Economy- India’s Bio-Economy Soars 16-Fold in a Decade, Reaching $165.7 Billion in 2024

FOR PRELIMS

What is bio-economy? Explain its key components.

FOR MAINS

What are the challenges in developing India’s bio-economy? And Government initiatives support the bio-economy in India?

Why in the news?

India’s bio-economy has achieved a remarkable 16-fold growth over the past decade, surging from $10 billion in 2014 to $165.7 billion in 2024. This milestone was announced by Union Minister Dr Jitendra Singh during the release of the India Bioeconomy Report 2025 (IBER 2025) at the BIRAC Foundation Day ceremony. The exponential growth reflects India’s strategic focus on biotechnology as a key driver of economic expansion, with the sector now contributing 4.25% to India’s GDP, exceeding initial expectations. India had initially set a bio-economy target of $150 billion by 2025, but the sector has already surpassed it a year ahead of schedule. With a Compound Annual Growth Rate (CAGR) of 17.9% over the past four years, India is reinforcing its potential as a global biotech leader.

Bio-economy refers to an economic system that utilizes biological resources, biotechnology, and bio-based innovations to create sustainable solutions for industries such as healthcare, agriculture, energy, and manufacturing. It focuses on using renewable biological materials to replace fossil-based resources, enhancing environmental sustainability and economic growth.
Key Components of Bio-Economy:
1. Biotechnology: Used in healthcare (vaccines, bio-pharmaceuticals), agriculture (genetically modified crops, bio-fertilizers), and industry (biofuels, biodegradable plastics).
2. Bio-Resources: Renewable biological materials like plants, microorganisms, and bio-waste used in food, fuel, and chemicals.
3. Sustainable Development: Reducing reliance on non-renewable resources and promoting circular economy practices.

Component of Bio-Economy

1. Biotechnology & Biopharma: Involves the development of vaccines, biosimilars, gene therapies, and advanced bio-manufacturing techniques to improve healthcare and disease management.
2. Bio-Agri & Agri-Tech: Focuses on genetically modified (GM) crops, bio-fertilizers, bio-pesticides, and precision farming to enhance agricultural productivity and sustainability.
3. Bio-Industrial & Bio-Manufacturing: Includes the production of biofuels, biodegradable plastics, bio-chemicals, and sustainable packaging to reduce environmental impact and promote green alternatives.
4. Bio-Energy & Bio-Fuels: Covers the development of renewable energy sources like ethanol, biodiesel, biogas, and waste-to-energy technologies to reduce dependence on fossil fuels.
5. Bio-IT & Digital Bio-Economy: Integrates AI, Big Data, and bioinformatics in genomics, drug discovery, and precision medicine to accelerate scientific advancements.
6. Marine & Environmental Bio-Economy: Utilizes marine bio-resources for pharmaceuticals, cosmetics, and food while also focusing on bio-remediation and climate change mitigation.
7. Bio-Waste Management: Converts organic waste into bio-energy, bio-compost, and eco-friendly materials, contributing to a circular economy and sustainable waste disposal.
8. Bio-Economy Policy & Investments: Includes government policies, funding programs, and global collaborations to promote biotech startups, research, and innovation in the sector.

Growth of Bio-Economy in India

India’s bio-economy has witnessed remarkable growth over the past decade, expanding from $10 billion in 2014 to $165.7 billion in 2024. This rapid rise represents a 16-fold increase and a Compound Annual Growth Rate (CAGR) of 17.9%. The sector now contributes 4.25% to India’s GDP, highlighting its role as a key pillar of economic development. Key factors driving this growth include advancements in biopharma, agriculture, bio-manufacturing, bio-energy, and digital biotech innovations. India has also established itself as a global hub for vaccine production, biosimilars, and biotech startups, reinforcing its leadership in the biotechnology sector.

Govt initiatives to promote Bio-Economy

1. Biotechnology Industry Research Assistance Council (BIRAC): A key government initiative that supports biotech startups, provides funding and promotes innovation in biotechnology.
2. National Biotechnology Development Strategy (NBDS): A long-term strategic framework aimed at making India a global leader in biotechnology by strengthening research and industry collaboration.
3. Atal Innovation Mission (AIM): Encourages entrepreneurship and innovation in biotechnology through funding, incubation centres, and startup support.
4. Biopharma Mission: Focuses on developing next-generation biopharmaceuticals, strengthening India’s position in global biopharma markets.
5. Production Linked Incentive (PLI) Scheme for Biotech Sector: Offers financial incentives to boost domestic biotech manufacturing and reduce dependency on imports.
6. Bio-Saarthi Initiative: A newly launched global mentorship program designed to support biotech startups through structured guidance and networking.
7. Waste-to-Wealth Mission: Encourages bio-waste management, bio-energy production, and circular economy practices to promote sustainability.
8. Agri-Biotech Initiatives: Supports research and development in genetically modified crops, bio-fertilizers, precision agriculture, and climate-resilient farming techniques.

Importance of Bio-Economy

1. Boosts Economic Growth and Employment: The bioeconomy plays a crucial role in GDP growth, providing millions of jobs in biotech research, bio-manufacturing, and healthcare.
2. Enhances Food Security and Agricultural Sustainability: Biotechnology helps improve crop yields, develop climate-resistant crops, and promote sustainable farming practices.
3. Revolutionizes Healthcare and Medicine: The sector enables the development of vaccines, biosimilars, personalized medicine, and cutting-edge healthcare solutions.
4. Supports Environmental Sustainability: Bio-based innovations reduce dependence on fossil fuels, encourage the use of renewable energy, and promote bio-waste management.
5. Strengthens India’s Global Leadership in Biotechnology: The rapid expansion of India’s bio-economy positions the country as a key player in global biotech innovation and trade.

Challenges to harness the potential of Bio-Economy in India

1. Regulatory Barriers and Policy Gaps: The complex and lengthy approval process for biotech innovations slows down research and commercialization.
2. Limited Funding and Private Sector Investment: While government support is increasing, private-sector investments in biotech R&D are still not at par with global standards.
3. Inadequate Infrastructure and Skilled Workforce: There is a need for more biotech research labs, world-class manufacturing facilities, and trained professionals to support industry growth.
4. Public Awareness and Acceptance Issues: Misinformation and resistance to genetically modified organisms (GMOs) and bio-based products hinder widespread adoption.
5. Intellectual Property (IP) and Patent Challenges: Ensuring strong patent protection for biotech innovations remains a challenge, affecting global competitiveness.
6. Limited Market Access and Global Competition: Indian biotech companies need better access to international markets and stronger global trade strategies to compete with developed nations.

way forward

1. Simplify Regulatory Frameworks: Streamlining approval processes will encourage faster biotech innovation and commercialization.
2. Increase Investment in Biotech R&D: Expanding funding opportunities for startups and research institutions will drive new discoveries and advancements.
3. Develop World-Class Biotech Infrastructure: Establishing more biotech parks, incubation centres, and advanced research labs will create a strong ecosystem for growth.
4. Enhance Skill Development and Education: Training professionals in bio-manufacturing, digital biotechnology, and bioinformatics will help meet industry demands.
5. Promote Public Awareness and Acceptance: Educating people about the benefits of biotech innovations will encourage their adoption in agriculture, healthcare, and industry.
6. Strengthen International Collaborations: Partnering with global biotech leaders will help India access cutting-edge research, expand its market reach, and enhance innovation.
7. Focus on Sustainability and Circular Bio-Economy: Encouraging bio-waste management, renewable energy, and eco-friendly materials will ensure long-term environmental benefits.

Conclusion

India’s bio-economy has experienced unprecedented growth, surpassing its 2025 target ahead of time. With strong government support, rising investments, and ongoing innovation, India is poised to become a global biotech powerhouse, driving economic growth, sustainability, and technological advancements. Additionally, fostering a robust biotech startup ecosystem, enhancing public-private partnerships, and leveraging digital transformation will further accelerate India’s leadership in the bio-economy sector, ensuring long-term growth and global competitiveness.

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