Meaning of Bioeconomy

Bioeconomy refers to the industrial and commercial use of biological resources such as plants, animals, microorganisms, and biological processes to produce goods and services. It integrates biotechnology, life sciences, and bio-manufacturing with economic activity to promote growth while reducing environmental impact.

Evolution and Expanding Scope

Traditionally, bioeconomy activities were concentrated in agriculture, healthcare, and pharmaceuticals. With advances in biotechnology and sustainability imperatives, its scope has expanded to include biofuels, bioplastics, green chemicals, industrial enzymes, textiles, construction materials, and synthetic biology-based solutions. Renewability, lower carbon footprint, and technological innovation are the key drivers of this transition.

Growth of India’s Bioeconomy

• India’s bioeconomy has nearly doubled in five years, growing from $86 billion in 2020 to $165 billion in 2024, surpassing the earlier target of $150 billion by 2025.
• The number of bioeconomy-related companies has increased significantly, indicating strong entrepreneurial momentum and investor confidence. 
• The sector has recorded a high growth rate of nearly 18% CAGR over the last four years and holds the potential to generate millions of jobs by 2030.

Sector-wise Contribution

The contribution of different segments reflects the diversified nature of India’s bioeconomy:

• Industrial biotechnology is the largest contributor, accounting for nearly 47%, driven by biofuels, bioplastics, and bio-based chemicals.
• The pharmaceutical and biopharma sector contributes around 35%, with vaccines, biologics, and biosimilars as key growth drivers.
• Research, IT, and bio-services have emerged as the fastest-growing segment, covering bioinformatics, clinical trials, biotech software, and R&D services.

Regional Distribution

• India’s bioeconomy is geographically concentrated. States such as Maharashtra, Karnataka, Telangana, Gujarat, and Andhra Pradesh together generate more than two-thirds of the total bioeconomy value. 
• In contrast, Eastern and Northeastern regions contribute less than 6%, reflecting gaps in infrastructure, investment, research ecosystems, and skilled manpower. Addressing these imbalances is essential for inclusive growth.

BioE3 Policy

• The BioE3 Policy (Biotechnology for Economy, Environment and Employment) launched in 2024 aims to position India as a global hub for bio-manufacturing and biotechnology R&D. 
• The policy focuses on strengthening priority areas such as bio-based chemicals, enzymes, functional foods, precision biotherapeutics, marine and space biotechnology, and climate-resilient agriculture. 
• It promotes collaboration among universities, research institutions, startups, and industry while seeking to remove policy and regulatory bottlenecks. Assam became the first state to adopt the BioE3 framework, signalling broader national adoption.

Policy Support and Innovation Ecosystem

• India’s biotechnology startup ecosystem has expanded rapidly, from about 50 startups in 2014 to over 10,000 in 2024. Government initiatives such as BioSaarthi provide global mentorship and support by leveraging the Indian diaspora. 
• Public–private partnerships have enabled breakthroughs including the development of Nafithromycin, India’s first indigenous antibiotic, successful gene therapy trials for haemophilia, and the completion of India’s whole genome sequencing initiative, which supports precision medicine. 
• Collaboration between DBT and ISRO has also opened avenues in space biotechnology and space medicine.

Challenges

• Despite rapid progress, the bioeconomy faces several challenges. Regulatory uncertainty, particularly regarding genetically modified crops, affects agricultural biotechnology adoption.
• Commercialisation of research remains uneven, scaling up bio-manufacturing is capital-intensive, and regional disparities persist. Skill gaps in advanced biotechnology domains further constrain growth.
• To sustain high growth, India needs a National Bioeconomy Mission for coordinated planning and execution. 
• Streamlined single-window regulatory mechanisms, stronger incentives for scaling bio-manufacturing, development of regional biotech clusters, and alignment of bioeconomy goals with climate and sustainability objectives will be crucial. 
• With policy coherence and regulatory clarity, India’s bioeconomy can emerge as a major engine of sustainable development and technological leadership.