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Market Reports

India’s Biotechnology Industry: Driving Innovation & Growth

Market Report - India’s Biotechnology Industry Driving Innovation & Growth
1Quick Facts: Biotechnology Industry in India
2Overview of India’s Biotechnology Industry
3India’s Biotechnology Industry – By Application
4Government Initiatives
5Megatrends in Biotechnology Industry
6Why Invest in India’s Biotechnology Industry?

Quick Facts: Biotechnology Industry in India

  • India is among the top 12 biotechnology destinations worldwide and the third largest in the Asia-Pacific region, commanding around 4% of the global biotechnology market
  • The biotechnology sector accounts for approximately 4.3% of India’s GDP, underscoring its growing significance as a key driver of the nation’s economic and industrial growth
  • India supplies about 60% of the global demand for DPT (diphtheria, pertussis and tetanus), BCG (bacillus calmette-guerin) and measles vaccines, making India the largest vaccine producer in the world
  • India allows 100% FDI under the automatic route (a non-resident or Indian company will not require any approval from the government) for greenfield pharmaceuticals and manufacturing medical devices
  • Since 2010, the Department of Biotechnology (DBT) has allocated 10% of its annual budget to specialized programs in North-East India, fostering research, education and entrepreneurship
  • The Indian biotech industry includes 800 companies and holds the second-highest number of US Food and Drug Administration (USFDA) approved plants
  • India’s patient pool is projected to grow by over 20% in the next decade, driven by population growth, new diseases and lifestyle changes, increasing demand for drugs and devices
  • The Indian government allocated INR 22.5 billion to the Department of Biotechnology (DBT) in the Interim Budget 2024-25
  • As of August 2025, there are 12 biotechnology parks supported by the Department of Biotechnology (DBT) and 95 bio-incubators supported by the Biotechnology Industry Research Assistance Council (BIRAC)

Overview of India’s Biotechnology Industry

India’s biotechnology industry has become a vital driver of economic growth, innovation and sustainable development, establishing the country as a global leader in vaccines, biopharmaceuticals and agricultural biotechnology. The COVID-19 pandemic highlighted India’s capabilities, showcasing rapid development and manufacturing of vaccines, which played a significant role in global health security.

A young and skilled workforce, along with a strong ecosystem of scientists and engineers, supports the growth of the biotechnology sector. Government initiatives, such as the National Biotechnology Development Strategy (NBDS) for 2021-2025 and the BioE3 Policy of 2024, have encouraged innovation, public-private partnerships and infrastructure development. This includes the establishment of 12 biotechnology parks and 95 bio-incubators.

Additionally, epidemiological factors suggest that the patient pool is expected to increase by over 20% in the next decade, driven by population growth and lifestyle changes, which will lead to a greater demand for drugs and medical devices. Regional strengths, particularly in states like Maharashtra, Karnataka and Telangana, contribute to a robust pan-India biotech ecosystem. As biotechnology merges with biodiversity conservation, especially in the North-East region, where 10% of the Department of Biotechnology’s budget is allocated, India is set to emerge as a bio-manufacturing powerhouse. This growth will contribute to economic development, environmental sustainability and employment creation.

Biotechnology Clusters in India

Biotechnology Industry - By Application

  • Biopharmaceutical:
    The biopharmaceutical segment accounts for the largest portion of India’s biotechnology market, primarily due to the production of vaccines, biosimilars and therapeutic proteins. With robust research and development capabilities and cost-effective manufacturing processes, India has emerged as a global hub for affordable biologics, exporting significantly to both regulated and emerging markets.
  • Bio-Agriculture: Bio-agriculture aims to enhance crop productivity, increase pest resistance and improve soil health with genetically modified seeds, biofertilizers and biopesticides. The growing demand for sustainable farming practices, along with government support for organic and precision agriculture, are major factors driving innovation and commercialization in the bio-agriculture sector across India.
  • Bio-Industrial:
    The bio-industrial segment utilizes biotechnology in manufacturing processes, producing biofuels, bioenzymes and biodegradable materials. This sector aids India’s transition toward a circular and low-carbon economy, decreasing reliance on petrochemical products while improving industrial efficiency and environmental sustainability.
  • Bio-Services:
    Bio-services include contract research, clinical trials and analytical testing services that are provided to pharmaceutical and biotech companies worldwide. India’s skilled workforce, advanced research infrastructure and cost-effectiveness have established it as a preferred outsourcing destination for biotechnology Research and Development (R&D) and clinical development.
  • Bioinformatics:
    Bioinformatics combines biology, data analytics and information technology to manage and interpret complex biological data. This rapidly growing field supports drug discovery, genomics and personalized medicine initiatives, leading to faster research outcomes and fostering innovation within India’s life sciences ecosystem.
India’s Biotechnology Market – By Application, 2024

Government Initiatives

BioE3 Policy (Biotechnology for Economy, Environment and Employment)

  • Launched in August 2024 by the Union Cabinet as a transformative policy framework to position India as a global biomanufacturing hub.
  • Focuses on high-performance biomanufacturing through the establishment of Bio-Foundry clusters, Bio-AI Hubs for innovation and Biomanufacturing Hubs for scaling operations.
  • Aims to generate employment opportunities in tier-II and tier-III cities by leveraging local biomass resources and bio-based manufacturing.
  • Promotes regenerative bioeconomy models and circular economy principles aligned with net-zero carbon emissions and ‘Lifestyle for Environment’ (LiFE) initiatives.

National Biopharma Mission (NBM)

  • Government-approved initiative with INR 21.2 Billion budget (50% co-funded by World Bank) to boost India’s capabilities in biopharmaceuticals, vaccines, biosimilars, medical devices and diagnostics.
  • Supporting 101+ projects involving 150+ organizations and 30+ MSMEs, fostering strong academia-industry collaboration.
  • Established 11 shared facilities, including Good Clinical Laboratory Practice (GCLP) laboratories for vaccine testing, Good Laboratory Practice (GLP) laboratories for biosimilar analysis and Current Good Manufacturing Practice (CGMP) facilities for manufacturing.

BIRAC Support and Infrastructure Development

  • Established 95 bio-incubators nationwide (75 Bio-NEST and 20 E-Yuva centres) providing comprehensive startup support through funding, infrastructure and mentorship.
  • 12 DBT-supported biotechnology parks across India offering technology incubation, demonstration facilities and pilot plant studies for accelerated commercialization.
  • Successfully nurtured 3,500+ startups and entrepreneurs, creating a vibrant innovation ecosystem with a focus on health-tech, agri-tech and industrial biotech.

Biotech-KISAN and Societal Development Programs

  • Scientist-farmer partnership program operating across 115 Aspirational Districts, empowering farmers, especially women and those in rural/tribal areas, through agricultural innovation.
  • Department of Biotechnology (DBT) Postgraduate (DBT-PG) Teaching Program supporting 80 universities with 670 students enrolled across 76 programs

Megatrends in the Biotechnology Industry

Biofuels and Green Energy Transition in India

  • India ranks third globally in both ethanol production and consumption.
  • As of June 2025, India’s total ethanol production capacity is approximately 18 billion liters annually, a significant increase from 13 billion in 2023, driven by government initiatives supporting the Ethanol Blended with Petrol (EBP) Program.
  • Ethanol blending increased significantly from 1.5% in 2014 to 15% in 2024, with a target of reaching 20% by 2025.

Biomanufacturing Revolution and BioE3 Implementation

  • Focus on sustainable manufacturing with low carbon emissions that align with net-zero targets and embrace principles of a circular bioeconomy, which drive growth in biomanufacturing.
  • Establishment of Bio-Foundry clusters to provide pilot and pre-commercial manufacturing infrastructure.
  • Integrate artificial intelligence and digital technologies to analyze large-scale biological data, facilitating advancements in gene therapies, food processing and industrial applications.

Data-Driven Biotech & Genomics / Bioinformatics

  • Genomic initiatives like Genome India drive demand for computing, storage, analytics and AI in biotech.
  • Integration of AI, machine learning, digital health, biomarker discovery and computational biology is accelerating in diagnostics and drug discovery.

Localized Biomanufacturing & Global Export Orientation

  • India boasts a large pool of scientists and researchers and there is a strong emphasis on self-reliance (Atmanirbhar Bharat) in biotechnological production to reduce import dependence
  • India boasts a large pool of scientists and researchers and there is a strong emphasis on self-reliance (Atmanirbhar Bharat) in biotechnological production to reduce import dependence scale-up and enhance export readiness.
  • Biomanufacturing platforms and infrastructural support are being developed to facilitate local
  • Biomanufacturing platforms and infrastructural support are being developed to facilitate local scale-up and enhance export readiness

Why Invest in India’s Biotechnology Industry?

Exponential Growth of Bioeconomy and Startup Ecosystem

  • The bioeconomy in India nearly doubled in four years, growing from INR 7.3 trillion in 2020 to INR 14 Trillion in 2024. This demonstrates sustained momentum with a compound annual growth rate (CAGR) of 17.7%.
  • As of September 2025, the number of biotech startups is approximately 11,000, marking a significant increase from 8,531 in 2023.
  • Innovation is thriving across health-tech, agri-tech and industrial biotech sectors, driven by increased investments, favourable policies and rising demand for biotech solutions.

World-Class Infrastructure and Thriving Innovation Ecosystem

  • The Biotechnology Industry Research Assistance Council (BIRAC) supports bio-incubators, while the Department of Biotechnology (DBT) backs biotechnology parks, both providing comprehensive support infrastructure for the sector.
  • There are advanced research facilities available in India, including High-Performance Computing resources and specialized laboratories. Additionally, shared equipment and testing facilities are accessible to researchers.
  • Strong collaboration between academia and industry is fostered through initiatives like the National Biopharma Mission, partnerships with universities and technology transfer mechanisms that facilitate the commercialization of biotechnology innovations.

Strong Government Support and Enabling Policy Framework

  • Extensive government support through various schemes from the Department of Biotechnology (DBT), initiatives from the Biotechnology Industry Research Assistance Council (BIRAC) and the National Biopharma Mission, which has a budget of INR 21.3 billion.
  • A comprehensive BioE3 policy framework was launched in August 2024, providing a strategic roadmap for excellence in biomanufacturing and sustainable growth.
  • The biotechnology sector now permits 100% Foreign Direct Investment (FDI) through an automatic route, covering pharmaceuticals, biotechnology, nanotechnology, biofuels and related industries.

Skilled Workforce, Research Base and Cost Advantage

  • India, with a population of 1.4 billion and 47% under 25, boasts a vast young and skilled workforce.
  • India has a large pool of science, engineering and life-science graduates and a thriving R&D base.
  • Lower manufacturing and labour costs compared to developed markets make scaling biologics, diagnostics and bioprocessing more cost-effective.
  • Synergies with the Indian IT/analytics sector give cost advantages, especially in bioinformatics, AI-driven biotech

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