The biotechnology sector of India is highly innovative and is on a high growth trajectory. The sector, with its immense growth potential, will continue to play a more significant role as an innovative manufacturing hub. The sector is one of the most significant sectors in enhancing India’s global profile as well as contributing to the growth of the economy. This sector is directly or indirectly related to the health as well as the agricultural sector of India.
The Indian biotech industry holds about 2 per cent share of the global biotech industry. By 2017, India’s biotech industry is estimated to increase to US$ 11.6 billion from US$ 4.3 billion in 2012. Presently, India is ranked 12th in the world in biotech and third in Asia-Pacific.
The high demand for different biotech products has also opened up scope for the foreign companies to set up bases and reap great profits. The biotechnology industry in India, comprising about 400 companies, has grown three-fold in the last five years to reach US$ 4 billion in FY 13. Growing at an average rate of about 20 per cent, India’s biotech industry comprising biopharmaceuticals, bio services, bio agriculture, bio industry and bioinformatics could reach the US$ 7 billion mark by 2015.
Bio pharma is the largest sector contributing about 62 per cent of the total revenue followed by bio services (18 per cent), bio agri (15 per cent), bio industry (four per cent), and bioinformatics contributing (one per cent). India has emerged as a leading destination for clinical trials, contract research and manufacturing activities owing to the growth in the bio services sector, which accounts for revenue generation worth about US$ 636.73 million.
With the country offering numerous comparative advantages in terms of research and development (R&D) facilities, knowledge, skills, and cost effectiveness, the biotechnology industry in India has immense potential to emerge as a global key player.
The growth in gross domestic product (GDP) over the next decade will expand the domestic market and Indians will be able to afford healthcare products, and demand for food commodities and energy will grow too. Presently, many countries are looking forward to invest in the Indian biotechnology sector.
India has all the ingredients to become a global leader in affordable healthcare. If there is an annual investment of US$ 4.019 billion to US$ 5.024 billion in the next five years, the biotech industry can grow to US$ 100 billion by 2025, with a 25 per cent return on investment, and set a growth rate of 30 per cent year-on-year. With government initiatives and determination of the industry to excel, India can soon attain global leadership in providing affordable healthcare and innovative medicines, quality food and feed for all.
(Source: Department of Industrial Policy and Promotion (DIPP); Department of Biotechnology; Indian Brand Equity Foundation )