India - a biotech growth catalyst
India is among the top 12 destinations for biotechnology in the world, with approximately 3% share in the global Biotechnology industry, poised for growth as a key contributor of India’s $5 tn economy target by FY 2024. India also plays a key role in the global vaccine market, as the leader in the global supply of DPT, BCG, and measles vaccines, and is a key contributor of 70% of WHO’s vaccines (essential Immunization Schedule). Indian companies are setting up facilities for nearly 5.5 bn doses of Covid-19 vaccines by 2021. India also ranks 48th on the Global Innovation Index.
India has the maximum no. of US FDA-approved manufacturing sites outside the US with 33% of total exports being supplied to the USA.
- By 2025, the Indian Biotechnology industry is expected to reach $150 bn from $70 bn in 2020
- In FY20, the sector grew 15% year on year
- By FY24, the contribution of the Indian biotechnology industry in the global biotechnology market is expected to grow to 19% from 3% in FY18
- India has over 4237+ biotech startups, and is expected to have over 10,000 by 2025.
- There are 760+ core biotech companies with 200+ Biotech products available in the Indian market
- There are 55+ Bio-incubators with an approximate Incubation space of 591,349+ sq ft across India supporting 1000 Incubatees
- There are 9 Biotechnology Parks and 4 Biotechnology Science Clusters across India
100% FDI is allowed under the automatic route for greenfield pharma.
100% FDI is allowed under the government route for brownfield pharma in upto 74% FDI is under automatic route and beyond 74% is under the government approval route.
FDI up to 100% is allowed under the automatic route for the manufacturing of medical devices.
For further details, please refer FDI Policy
Biotechnology Science Clusters
Expected CAGR (2022-2025)
World's largest producer of recombinant Hepatitis B vaccine
World's largest producer of BT Cotton with 35.7 million bales produced in FY19-20
World's highest number of USFDA approved plants outside the US.
- Industry Scenario
- FOREIGN INVESTMENT
- INDUSTRY TRENDS
- POLICIES & SCHEMES
The Indian Biotechnology industry that was valued at $70 bn in 2020 will reach $150 bn target by 2025.
The sector is divided into five major segments: BioPharma, BioAgriculture, BioIndustrial, and the combined segment of BioServices comprising of BioIT, CROs, and Research Services.
The percentage share of the biotechnology segments is:
- Bio-Pharmaceuticals: 62%
- CRO/BioIT/Research: 15%
- Bio-agriculture: 16%
- Bio-Industrial: 7%
India is also one of the first countries to have a department dedicated to Biotechnology. Moreover, the Department has also set up BIRAC (Biotechnology Industry Research Assistance Council) which is a not-for-profit agency to strengthen and empower emerging Biotechnology enterprises to undertake strategic research and innovation, by handholding them from ideation to the commercialization of their products/ technologies.
India to become the world’s most populous country by 2027
Rising public health expenditure
Government expenditure on healthcare up to 1.6% in FY20 from 1.3% in FY16, with a target of 2.5% of the country's GDP by 2025
Capacity building initiatives
Bolstered by the ‘National Biopharma Mission’, an Industry-Academia mission to skill the workforce
National Biomedical Resource Indigenisation Consortium
Enabling India to become a net exporter of affordable diagnostics and testing kits, personal protection equipment (PPE) kits and vaccines through policy, funding and removal of infrastructure and regulatory bottlenecks.
Cost competitive manufacturing
Hon’ble PM Narendra Modi, during 107th Indian Science Congress in January 2020, announced that the Centre aims to develop India as a world-class $100 bn Bio-manufacturing hub by 2024
Government acting as an enabler to improve EoDB
Critical Policy initiatives and support to innovative research, human resource development and entrepreneurial ecosystem by Government of India in consideration. Initiatives include Make in India, Startup India and Atmanirbhar Bharat Abhiyan (promoting domestic manufacturing).