The Karnataka government has launched its Biotechnology Policy for 2024-2029, setting an ambitious target of expanding the state's bio-economy to USD 100 billion by 2030.
Unveiled on Friday, the policy will look to position the state as a global leader in the biotechnology sector. The announcement comes just a day after receiving approval from the state cabinet.
The policy aims to create 30,000 high-quality jobs in the biotechnology sector by 2029. To achieve this, it will collaborate with over 200 institutions to equip 20,000 individuals with specialised skills. Additionally, the policy seeks to support the establishment of 300 biotech companies, including 50 cutting-edge firms, through an incentive program.
Karnataka IT-BT Minister Priyank Kharge said, “We are thrilled to unveil the Karnataka Biotechnology Policy 2024-2029, which marks a landmark moment in our journey to establish Karnataka as a global biotechnology leader. The bioeconomy in Karnataka has experienced extraordinary growth, and the innovative and entrepreneurial spirit of startups has been significant in shaping the future of Karnataka’s bioeconomy.”
The new initiative seeks to bolster the state's role in India’s rapidly growing biotechnology space through a wide range of fiscal incentives and concessions designed to attract startups, MSMEs, and large industries alike.
For startups, the policy offers benefits such as state GST reimbursement, patent and marketing cost reimbursements, and support for incubation centers. Micro, Small, and Medium Enterprises (MSMEs) stand to gain from similar incentives, including prototyping cost reimbursement and power tariff concessions, while large industries will benefit from production-linked incentives, land cost reimbursement, and interest subsidies. These incentives are designed to create an ecosystem conducive to growth, particularly for early-stage biotech startups, which will also receive funding and mentorship support.
The policy is aligned with Karnataka’s broader economic and sustainability goals, with a focus on biomanufacturing related to health, climate change, and food security. The state aims to position itself as a global hub for biomanufacturing, while also promoting innovation in emerging areas such as bio-agriculture, bio-energy, medical devices, and space biotechnology.
Additionally, the policy introduces a regulatory sandbox framework to expedite innovation and encourages the preferential procurement of locally developed biotech products, further boosting market access for mid-stage ventures. By integrating with existing state policies, the government aims for a seamless implementation that addresses the specific needs of the biotechnology sector.
