Recently, Union Minister Jitendra Singh in a bold statement said in New Delhi that the next industrial revolution will be "bio-economy driven". At the curtain raiser ceremony of Global Bio India 2024, the MoS for Science and Technology, Earth Sciences stated that if the last industrial revolution in the 1990s were IT-driven, the next one in the 21st century would be bio-economy driven.
Singh recalled the clarion call of Prime Minister Narendra Modi of ‘Startup India Stand Up India’ which ushered a new revolution in startups related to technology science and innovation, many of them related to the marine economy, space economy and bio-economy.
Singh claimed that India’s bio-economy has grown 13-fold over the last decade, from USD 10 billion in 2014 to over USD 130 billion in 2024, with a projection to reach USD 300 billion by 2030. Underscoring the impact of biotechnology, he also noted that India has climbed from 81st place in 2015 to 40th out of 132 economies in the Global Innovation Index. The country ranks third in the Asia-Pacific region and 12th globally in terms of biomanufacturing.
Experts noted that deep research in science and its application can deliver good results in various fields such as health, medicines, vaccines, Agro productivity and quality, converting waste-land to agro-land, water conservation, treatment of domestic and industrial effluents, power-generation, reducing GHG emission, reducing micro-plastics in water and air, curing of chronic and hereditary disease, replacing industrial-goods with eco-friendly goods and so many.
“Technologies such as genetic editing, bioprocessing, digital integration and bioprinting are key to creating an interconnected and dynamic framework for growth in bioeconomy. Considering the multidisciplinary nature of bioeconomy, an internal structure can be created that co-ordinates across departments such as agriculture, forestry, industry, tourism, energy and waste management. Lastly, market mechanisms like carbon trading, eco standards and labelling could also be given greater emphasis,” said Geetanjali Khatri, Executive VP and Country Head, Capgemini Invent, India.
As per national statistics, there is no separate category or data of bio-economy in gross domestic product (GDP). However, a PIB notification dated November 2023 stated that in FY-2023, the size of the bio-economy was USD 80 billion, about 2.4 per cent of nominal GDP. Using biological resources to produce any goods or services can be termed a bio-economy.
In the past few decades, the entire globe including India has realised its importance for overall human development and also economic growth. It shall need few more decades to achieve dominant-share of bio-economy in the total GDP. "For this, India must aggressively increase R&D spending every year from fiscal resources. Such niche area is generally associated with financial risks. Hence, private-sector prefers buying proven technology and producing goods and services instead of risky investments. Besides normal R&D spending, few corporations might sponsor specific research related to their core activity," said RP Gupta, Economist and Author.
Since the 1950s, India has built several research and educational institutes in multiple sciences including biology. In 1986, Bio-technology Department was created followed by several vision and strategy documents. India is also blessed with talented human capital with superior DNA, genetic resources and knowledge of nature science, said Gupta and added that those should be upgraded with liberal financing.
Who Will Potentially Benefit?
Experts noted that the bioeconomy is fast gaining traction with government initiatives such as the National Biotechnology Development Strategy 2025 setting the ambition for India to be a Global Biomanufacturing Hub by 2025, with the sector growing to achieve a growth of USD 150 billion.
The Global Biofuel Alliance (GBA) on the sidelines of the G20 summit last year also aimed at facilitating the adoption of biofuels and thrust on local manufacturing. Notably, the Biobased Industries Consortium points out that by 2030, the bioeconomy has the potential to reduce GHG by up to 2.5 billion tons of CO2 equivalent per annum.
With agriculture and allied service sectors being the primary source of livelihood for nearly 55 per cent of India’s population, the use of bio-based products such as bio-stimulants, bio-fertilisers, and biopesticides, in agriculture could foster repurposing, recycling, and reuse of agro-wastes, in turn contributing towards sustainable agricultural practices.
Khatri added, “The Northeastern (NE) region of India is a recognised biodiversity hotspot in the world. The Department of Biotechnology (DBT) is working on a mission aimed at the conservation and discovery of new botanical drugs so to enable NE states to emerge as leaders in the export and production of botanical drugs. This is just one example of how targeted programs aimed at entrepreneurship, R&D, upskilling, and establishing networks and platforms for collaboration and investment can help propel the bioeconomy.”
According to a recent Capgemini report, 74 per cent of Indian organisations surveyed believe biosolutions will positively impact climate change while 70 per cent foresee benefits for air pollution and 62 per cent for plastic pollution. Growing the bioeconomy in the Global South in a circular, sustainable way offers direct economic and environmental benefits, with the potential to capture the economic opportunity of bio-based products across industries like food, animal feed, waste products and energy estimated at USD 7.7 trillion (WBCSD 2020).
Ethical Considerations And Social Implications
As India eyes the next industrial revolution on the back of the growing bio-economy segment, strong and transparent governance frameworks are necessary to regulate the bioeconomy sector, ensuring safety efficacy and ethical standards in genetic applications. Concerns over genetic privacy, potential ecological impacts, and socioeconomic disparities demand attention. Questions of consent, autonomy, and equity loom large in the realm of human genetic engineering. Who should have access to these technologies? How do we ensure that they are used responsibly and equitably? The widespread adoption of genetically modified crops has raised concerns about biodiversity loss.
Khatri told BW Businessworld, “While gene editing technologies hold the potential to eradicate invasive species and restore damaged ecosystems, they also raise concerns about unintended consequences and the alteration of natural systems. The challenges are especially acute for developing an ecosystem at the global scale due to a lack of metrics or standards acceptable to all countries.”
Obstacles And Way Forward
With a total population of 1.4 billion, about 47 per cent being under the age of 25, India has a large pool of young and skilled workforce along with a major reservoir of scientific human resources including scientists and engineers. According to the India Brand Equity Foundation (IBEF), India is the third-largest biotechnology market in the Asia-Pacific region and one of the top 12 globally. The nation controls 3 to 5 per cent of the worldwide biotechnology market.
Divided into five segments such as biopharmaceuticals, bio-services, bio-agriculture, bio-industrial and bio-IT, the country is the world's second-largest producer of BT cotton and the third-largest of the recombinant Hepatitis B vaccine.
However, India's transition to a bio-economy faces significant obstacles, including fragmented research, regulatory hurdles, market awareness, and market development challenges. Lack of familiarity with engineering biology, hinders customer understanding and acceptance of biosolutions. Business viability is also a concern, as developing and scaling biosolutions is costly and time-consuming, making them less competitive compared to traditional solutions.
“Providing financial support and building robust business models can help address this. Technological barriers, such as the complexities of scaling bioprocesses, highlight the need for improved lab automation and advanced AI models to drive innovation. Within Capgemini, advancement in AI technology has allowed us to curate a set of innovative bio-engineering tools to provide solutions with greater accuracy, efficiency and productivity. Streamlining regulations, improving infrastructure, and closer collaboration between industry and policymakers are critical to accelerating bio-economy adoption in the country,” mentioned Khatri.
According to the experts, major growth in the bio-economy and related enterprises is an indication that the time is ripe for both government and non-government sectors to collaborate in addressing the challenges facing humanity. Notably, there is a need for early industry linkages and urged the removal of scepticism towards private sector participation.
In the same event, Rajesh Gokhale, Secretary of the Department of Biotechnology noted that companies in the biotechnology sector have achieved a valuation of Rs 75,000 crore over the past ten years. Gokhale further highlighted that biotechnology is one of the sunrise sectors, with nearly 28,000 proposals currently being evaluated for upscaling.
India has 665 FDA-approved plants in the United States (US); 44 per cent of the global abbreviated new drug applications (ANDA) and more than 1,400 manufacturing plants, which are compliant with the World Health Organisation's (WHO’s) requirements. The Department of Biotechnology has 1,484 ongoing projects as of December 2023.
With aforesaid advantages, India must reset priority areas of its useful application through several brain-storming discussions with technical and economic experts. Gupta added, “I believe a composite plan for every five years must be prepared along with requisite financial support. Low-hanging fruits in agro and health sectors must get priority.”
In FY22, India’s pharmaceutical exports touched USD 23.04 billion (Rs 1.8 trillion). Formulations and biologicals account for 73.31 per cent of the country's total exports, followed by bulk drugs and drug intermediates, the IBEF data revealed.
According to the experts, the import of raw materials for medicines must be replaced with domestic production. Also, the import of vaccine technology, as faced during Covid-19, should be resolved for future needs. Genome testing of all types of microbes must increase by upgrading existing public institutes. Besides harmful viruses, many useful microbes improve life and contribute to the economy and environment.
The use of genetic science for changing human genes is generally not desirable considering ethics, social implications and associated dangers. However, Gupta told BW Businessworld, “Its calibrated use for the curing of genetic diseases is welcome. Also, its rational usage in agriculture, health, vaccines and domestic-sewage treatment should get priority."
