India's bio-economy's quest to be the global eco-system

The term bioeconomy lacks a standardised definition, and the National Academies of Sciences, Engineering, and Medicine (NASEM), USA, considers bioresource, biotechnology, and bioecology as the three visions defining the bioeconomy conceptions. The magnitude of a national bioeconomy can frequently reflect an amalgam of these visions, and these concepts are not mutually exclusive (India BioEconomy report,2023). According to Food and Agriculture Organisation (FAO) of the United Nations, bioeconomy is defined as ‘the production, utilisation, conservation, and regeneration of biological resources, including related knowledge, science, technology, and innovation, to provide sustainable solutions within and across all economic sectors and enable a transformation to a sustainable economy’ (Food and Agriculture Organisation of the United Nations, 2024).

Indian bioeconomy is a multidimensional and unified force, with BioPharma or biomedical, BioAgri, BioIndustrial, BioResearch and BioIT (BioServices) sectors contributing to its growth. The multifaceted value chains in these sectors are recorded to measure the Indian bioeconomy and demonstrate the various ways that they influenced the national economy (India bioeconomy report, 2023). The Indian bioeconomy has grown around tenfold in a decade and is expected to double in the next few years. The bioindustry and biopharma sectors are leading the way, and the Indian bioeconomy report of 2023 highlights the adaptability and resilience of the bioeconomy, as evidenced by the growing scope of bio-agriculture and bio-IT services in the nation (Malik, 2022; India bioeconomy report 2023).

India's bioeconomy has grown rapidly, increasing from $86 billion in 2020 to $137 billion in 2022, with projections to reach $300 billion by 2030, as outlined in the India Bioeconomy Report 2023. The recently held Global Bio-India 2024 conference in New Delhi further emphasised the immense potential in 'Biotech Innovation' and 'Bio-manufacturing' to boost the bioeconomy. During the event, the IBER 2024 was launched, alongside the unveiling of 30 groundbreaking startups, marking a significant milestone in the future of the nation's bioeconomy (Press information Bureau, 2024).

According to IBER 2024, India’s bioeconomy surged to $151 billion by the end of 2023, highlighting its key role in national growth, contributing 4.25% to the country’s GDP and placing India among the top five global bioeconomies (Deccan Herald, 2024; Global Bio-India 2024). With a combined monthly revenue of over $1 billion, the bioeconomy of the country has been boosted by several important domains including bioethanol, vaccines, biotherapeutics, and diagnostics. Furthermore, India's bioeconomy has benefited greatly from the COVID-19 epidemic, which has elevated the nation to the forefront of industry, research, and development. India has taken the lead in the fight against COVID-19, investing over $1 billion in research and development in 2021 (Malik, 2022).

Moreover, India produces 60% of the world's vaccinations, covering 40–70% of WHO's requirements for Bacillus Calmette–Guérin(BCG) and Diphtheria, Tetanus and Pertussis (DPT) vaccines, as well as 90% of measles vaccinations (Annual report 2022-2023). It is important to note that biotechnology serves as the backbone for the growth of all these sectors and hence referred to as 'India's Sunrise Sector' due to its potential to completely transform the national bioeconomy. Currently, India is the third-biggest biotechnology destination in Asia Pacific and one of the top 12 biotechnology destinations globally. Biotech startups, which have grown from nearly fifty in 2014 to more than 6,000 in 2022, played a significant role in this accomplishment. This has successfully placed India on the global biopharmaceutical and bioindustrial map. Thus, recognising the vital role of bioeconomy in driving national growth, India has introduced several initiatives to foster its development. During the Bio-India 2023 launch, an international biotechnology event, Union Minister Dr. Jitendra Singh highlighted India's goal to become one of the top five global bio-manufacturing hubs by 2025 (Biopspectrum, 2023).

Additionally, in her 2024–2025 budget speech, Finance Minister Nirmala Sitharaman outlined plans to promote eco-friendly bio-manufacturing alternatives and set a bold target of achieving a $1 trillion bioeconomy by 2047, aligning with India's vision for a sustainable, green economy (Mukunth, 2024). Building on these efforts, the government approved the 'BioE3 (Biotechnology for Economy, Environment, and Employment) policy to foster high-performance biomanufacturing' on August 24, 2024. This policy is designed to accelerate technology development and commercialisation by establishing biomanufacturing & bio-AI hubs, as well as bio foundries. By prioritising regenerative bioeconomy models aimed at green growth, the policy will not only expand India's skilled workforce but also drive significant job creation, further strengthening the nation's bioeconomy (BioE3 policy, DBT, 2024).

The Indian Biopharmaceutical Sector

Biopharma, often known as biomedical, is a sector of the Indian bioeconomy that comprises several segments, including biopharmaceuticals, medical devices, MedTech, and diagnostics. The biopharma sector continues to be one of the major contributors of the Indian bioeconomy (India BioEconomy report, 2023). The global biopharmaceuticals market is dominated by companies from developing nations like India. Their efforts have made medications of good quality that are affordable and accessible.

These companies hold a 40% market share in the United States and a 20% global supply share by volume, making them top suppliers of biopharmaceuticals worldwide. This was seen in the COVID-19 pandemic, where 62% of the world's vaccine demand was being met by Indian enterprises.

Since the Department of Biotechnology was established by the government in the 1980s, the Indian biopharmaceutical sector has grown significantly. Its rapid progress has made it an important player on a global scale.

The significant progress in biopharmaceuticals, from the early use of ‘humanised insulin’ to a wide range of novel treatments, is primarily responsible for this growth. With the greatest number of biosimilars licensed for the domestic market, the Indian biopharmaceutical sector is at the forefront of the biosimilars market. Biosimilars are predicted to reach a $36 billion global market potential by 2025, growing at a compound annual growth rate of 24%. Experts predict that the Indian vaccines business, which is currently valued at $2 billion, has the potential to grow to $5 billion in the near future, confirming its place on the global healthcare map. Thus, with the shift towards the production of biosimilars and a competitive advantage in vaccine manufacturing, the Indian biopharma industry has evolved from being a 'Trading Nation' to a 'Trade Smart Nation’.

As per the annual industry report 2023 published by the Convention on Pharmaceutical Ingredients (CPHI), India is expected to experience the fastest growth rate in biopharmaceuticals over the next five years,  compared to all other markets worldwide. This growth is expected to be driven by the rapid emergence of the bio-contract development and manufacturing organisation (CDMO) space, which is in line with the trend observed in China and Korea.

Additionally, biopharmaceuticals are capturing a growing share of the pharmaceutical market, as they are increasingly recognised as a solution to pharmaceutical pollution and a key to environmental sustainability. Given the immense market opportunity and unmet clinical demand, the Indian biopharma sector is likely to expand in the coming years.

World’s first biosimilar Herceptin was CANMab, a biosimilar Trastuzumab developed by Biocon and Mylan, introduced in India in 2014. Subsequently, several biosimilar versions were produced. This has made it possible for India to see the global commercialisation of more biosimilars, such as Biocon's Insulin Glargine, which was launched in Japan in 2016 (Biocon Press release, 2016), or Fulphila (Pegfilgrastim), another biosimilar that Biocon and Mylan co-developed and which was licensed in the US in 2019 (Biocon Press release, 2019).

Furthermore, reports indicate that Indian biopharmaceutical companies will capture a substantial market share in the next ten years, as they are well-positioned to expand into the biosimilar categories. As with the US story of generics, if implemented effectively, this may be the next big thing for the Indian biopharmaceutical sector. The increasing number of biosimilars that India has already introduced demonstrates the potential for this. Also, the Indian government has taken action to promote the advancement of India as a centre for biopharmaceuticals due to the great commercial potential and the necessity of developing indigenous drugs to meet the needs of the large Indian population.

Moreover, the biopharma sector in India is expected to grow exponentially in the upcoming years due to the growing number of biotech startups, biotech enterprises, and biotech incubators in the country. It also has the potential to become an internationally regarded centre contributing to the global biotech ecosystem (Clarivate Analytics, 2019).

Authors:

Abhay H. Pande, J Anakha, Yenisetti Rajendra Prasad and Anil K Angrish