India rated among top 12 biotechnology destinations in the world
- Posted By
10Pointer
- Categories
Science & Technology
- Published
28th Feb, 2020
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Context
- India is among the top 12 biotech destinations in the world and ranks second in Asia, after China.
- The Indian biotech industry is likely to experience significant growth on the back of increasing economic prosperity, health consciousness and a billion-plus population base.
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Why is it important for India?
- The biotechnology sector of India is highly innovative and is on a strong growth trajectory. The sector, with its immense growth potential, will continue to play a 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.
- India is among the top 12 biotech destinations in the world and ranks third in the Asia-Pacific region.
- India has the second-highest number of US Food and Drug Administration (USFDA)–approved plants, after the USA and is the largest producer of recombinant Hepatitis B vaccine. Out of the top 10 biotech companies in India (by revenue), seven have expertise in bio-pharmaceuticals and three specialise in agri-biotech.
- India has no dearth of talent in biotechnology, as a number of institutions, both government and autonomous, provide the necessary opportunities for the students seeking to obtain a degree in this sector.
- The Government of India has provided adequate scope to this sector by providing facilities for Research and Development (R&D) in the field of biotechnology.
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What is the current scenario in India?
- The Indian biotech industry holds about 2 per cent share of the global biotech industry. The biotechnology industry in India, comprising about 800 companies, is expected to be valued at US$ 11.6 billion in 2017.
- The government has to invest US$ 5 billion to develop human capital, infrastructure and research initiatives if it is to realise the dream of growing the sector into a US$ 100 billion industry by 2025, as per Union Minister for Science and Technology.
- Biopharma 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 (4 per cent), and bio-informatics contributing (1 per cent).
- The high demand for different biotech products has also opened up scope for the foreign companies to set up base in India.
- India has emerged as a leading destination for clinical trials, contract research and manufacturing activities owing to the growth in the bio-services sector.
- As on November 2016, Odisha released the draft of its first Biotechnology policy. The state aims to become one of the top five bio-tech hubs in the country. The state government has proposed to set up a fund with investment of US$ 3.73 million and provide land on priority for setting up of biotechnology projects.
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How is government trying to gain maximum benefit out of it?
- The Government of India has taken several initiatives including a biotechnology industry partnership program to develop new technologies and launched a National Rural Healthcare Mission to boost healthcare spending.
- As per the 12th Five-Year Plan, the government aims to spend US$ 3.7 billion on biotechnology compared to US$ 1.1 billion in the 11th Five-Year Plan to accelerate the pace of research, innovation and development.
- In addition, the Department of Biotechnology (DBT) has designed the National Biotechnology Development Strategy (NBDS) to strengthen the industry’s human resources and infrastructure while promoting growth and trade.
- Furthermore, the Government has allowed 100 per cent Foreign Direct Investment (FDI) through the automatic route for manufacturers of drugs and pharmaceuticals.
- The Telangana state government's flagship pharma and biotech event - BioAsia 2017 attracted investments to the tune of Rs 3,382 crore (US$ 507.3 million).
- During the Vibrant Gujarat Global Summit-2017, 54 MoUs worth Rs 5,022 crore (US$ 736.1 million) in the biotechnology sector were signed by 37 companies.
- Syngene International Ltd, the contract research services arm of Biocon Ltd, is setting up a drug discovery and development center in Bengaluru for Amgen Inc., a biotechnology company based in the US.
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What is the road ahead?
- With the country offering numerous comparative advantages in terms of R&D facilities, knowledge, skills, and cost effectiveness, the biotechnology industry in India has immense potential to emerge as a global key player.
- India constitutes around 8 per cent of the total global generics market, by volume, indicating a huge untapped opportunity in the sector.
- Outsourcing to India is projected to spike up after the discovery and manufacture of formulations. Hybrid seeds, including GM seeds, represent new business opportunities in India based on yield improvement.
- India currently has a marginal share in the global market for industrial enzymes. Hence, there is an opportunity in focused R&D and knowledge-based innovation in the field of industrial enzymes, which can innovatively replace polluting chemical processes into eco-friendly processes that also deliver environmental sustainability.
- Another interesting field of study is the area of bio-markers and companion diagnostics, which will enable to optimise the benefits of biotech drugs.
