India is among the top 12 destinations for biotechnology in the world, with approximately 3% share in the global Biotechnology industry, poised for growth as a key contributor of India’s $5 tn economy target by FY 2024. India also plays a key role in the global vaccine market, as the leader in the global supply of DPT, BCG, and measles vaccines, and the contributor of 70% of WHO’s vaccines (essential Immunization Schedule). India ranks 48th on the Global Innovation Index.

India has the maximum no. of US FDA-approved manufacturing sites outside the US with 33% of total exports being supplied to the USA.

Salient Features of the Biotechnology sector

- By FY24, the Indian Biotechnology industry is expected to reach $150 bn from $62.5 bn in FY20
- By FY24, the contribution of the Indian biotechnology industry in the global biotechnology market is expected to grow to 19% from 3% in FY18
- By FY24, India is expected to have over 10,000 biotech startups from the 3,475 startups in FY21
- There are 600+ core biotech companies with 200+ Biotech products available in the Indian market
- There are 50 Bio-incubators with an approximate Incubation space of 5,49,000+ sq ft across India supporting 650+ Incubatees
- There are 9 Biotechnology Parks and 4 Biotechnology Science Clusters across India
- 100% FDI is allowed under the automatic route for greenfield pharma.

- 100% FDI is allowed under the government route for brownfield pharma in upto 74% FDI is under automatic route and beyond 74% is under the government approval route.

- FDI up to 100% is allowed under the automatic route for the manufacturing of medical devices.

- 9 Biotechnology Parks

- 4 Biotechnology Science Clusters

- 50 Bio-incubators

- 22% Expected CAGR (2016-22)

- HBV World's largest producer of recombinant Hepatitis B vaccine

- BT Cotton World's largest producer of BT Cotton

- Plants World's highest number of USFDA approved plants

Industry Scenario
The Indian Biotechnology industry that was valued at $62 bn in 2019 will reach $150 bn target by 2025.
The sector is divided into five major segments: Bio-Pharmaceuticals, Bio-Services, Bio-Agriculture, Bio-Industrial, and Bio-IT.

The percentage share of the biotechnology segments is:

Bio-Pharmaceuticals: 64%
Bio-Services: 18%
Bio-Industrial: 3%
Bio-IT: 1%
India is also one of the first countries to have a department dedicated to Biotechnology. Moreover, the Department has also set up BIRAC (Biotechnology Industry Research Assistance Council) which is a not-for-profit agency to strengthen and empower emerging Biotechnology enterprises to undertake strategic research and innovation, by handholding them from ideation to the commercialization of their products/ technologies.

GROWTH DRIVERS
Growing population
India to become the world’s most populous country by 2027

Rising public health expenditure
Government expenditure on healthcare up to 1.6% in FY20 from 1.3% in FY16, with a target of 2.5% of the country's GDP by 2025

Capacity building initiatives
Bolstered by the ‘National Biopharma Mission’, an Industry-Academia mission to skill the workforce

Cost competitive manufacturing
Hon’ble PM Narendra Modi, during 107th Indian Science Congress in January 2020, announced that the Centre aims to develop India as a world-class $100 bn Bio-manufacturing hub by 2024

Government acting as an enabler to improve EoDB
Critical Policy initiatives and support to innovative research, human resource development and entrepreneurial ecosystem by Government of India in consideration

Story Input

https://www.investindia.gov.in/sector/biotechnology