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Biotechnology industry in India

BIOTECHNOLOGY
Latest update: July, 2017

EXPLORE OTHER INDUSTRIES Robust growth in

Biotech industry
- Industry -
Growing at a
faster pace, in
comparison with
India is ranked 12th in the the previous
years, the
world in biotech and third in Indian biotech
Asia-Pacific. industry
witnessed YoY
growth of 57.14
per cent in
FY16; the total
industry size
stood at US$ 11
billionby FY16
and is estimated
to reach US$
11.6 billion by
FY17
Fast-paced
growth is likely
to continue; the
i d t i

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Last Updated: July, 2017

Introduction
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.

Market size
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, Mr Harsh Vardhan.

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.

Investments
India's biotech sector has attracted significant amount of attention over the past two decades. Several global
companies have aggressively joined hands with Indian companies due to India's strong generic biotechnology
potential. Some of the recent investments and developments in this sector are as follows:

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.

Government Initiatives
A Network of Technology Centres and promotion of start-ups by Small Industries Development Bank of India
(SIDBI) are among the steps taken by the Government of India to promote innovation and entrepreneurship in the
agro industry proposed by the Ministry of Micro, Small & Medium Enterprises (MSME) in a new scheme. The /
 Government of India has taken several initiatives to improve the biotechnology sector in the country as well as offer
enough scope for research in this field. The Department of Biotechnology (DBT) along with other government
funded institutions such as National Biotechnology Board (NBTB) and many other autonomous bodies representing
the biotechnology sector, are working together in order to project India as a global hub for biotech research and
business excellence. Some of the recent major initiatives are as follows:

In the Union Budget 2017-18, the Department of Biotechnology (DBT) received Rs 2,222.11 crore (US$ 333.31
million), an increase of 22 per cent, to continue implementing the department’s national biotech strategy and
target increasing the turnover from the sector to $100 billion by 2025 from $7 billion in 2016.
The Telangana government also inked an MoU with PE firm Cerestra to explore a 'Life Sciences Infrastructure
Fund' with a corpus of Rs 1,000 crore (US$ 150 million) to create a sophisticated modular plug and play
infrastructure for pharma, biotech and medical devices industry.

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.

Exchange Rate Used: INR 1 = US$ 0.0155 as of April 17, 2017.

References: Press Information Bureau (PIB), Media Reports and Press Releases, Department of Industrial Policy
and Promotion (DIPP), Department of Biotechnology, Union Budget 2017-18

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

BIOTECHNOLOGY INDIA
BIOTECHNOLOGY CLUSTERS INDUSTRY CONTACTS

Association of Biotechnology Led

Enterprises (ABLE)

All India Biotech Association (AIBA)

Biocon

Matrix Laboratories Ltd

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