India Biotechnology Market 2024–2033

Reports Description

India Biotechnology Market was valued at USD 101.5 Billion in 2024 and is expected to reach USD 297.2 Billion by 2033, at a CAGR of 11.09% during the forecast period 2024 – 2033.

Biotechnology is essentially the use of living organisms and their processes to develop products or technologies. This can involve using bacteria to produce medicines, engineering crops to be more resistant to disease, or even creating new materials with unique properties.

The biotechnology market is booming, expected to reach over $4 trillion by 2033. This growth is driven by factors like rising awareness of health issues, advancements in areas like gene editing, and increased government funding for research.

The market itself is segmented into different areas like biopharmaceuticals, which include drugs and vaccines, and bio agriculture, which focuses on improving crops. There’s also bioinformatics, which uses computer science to analyse biological data, and bio services, which encompasses things like contract research.

India Biotechnology Market: Growth Factors

Government Initiatives and Supportive Policies

The Indian government has been actively promoting biotechnology through various initiatives and policies. The Department of Biotechnology (DBT) has been instrumental in driving research, innovation, and entrepreneurship in the sector. One significant initiative is the Biotechnology Industry Research Assistance Council (BIRAC), which supports startups and SMEs in biotechnology.

According to data from the Ministry of Science & Technology, the government allocated approximately USD 1.1 billion for biotechnology-related programs in the 2021-22 fiscal year, demonstrating strong financial backing for the sector. This support fosters a conducive environment for biotech companies to thrive, driving market growth.

Increasing R&D Investments and Collaboration

India has witnessed a surge in research and development investments in the biotechnology sector. Both public and private entities are allocating substantial funds to advance biotech research and innovation. Additionally, collaborations between Indian biotech firms and international counterparts have intensified, leading to knowledge exchange, technology transfer, and joint ventures.

For instance, partnerships between Indian and global pharmaceutical companies for drug discovery and development are becoming more common. Such collaborations not only accelerate product development but also enhance India’s position in the global biotechnology landscape.

According to the Ministry of Commerce & Industry, India’s R&D expenditure in biotechnology reached approximately INR USD 3 billion in the fiscal year 2020-21, underscoring the growing investment in innovation.

India Biotechnology Market: Restraints

Regulatory Challenges and Approval Delays

Despite government support, the Indian biotechnology market faces regulatory hurdles and delays in product approvals. Stringent regulatory requirements often result in lengthy approval processes, hindering the timely introduction of biotech products into the market.

Complex regulatory frameworks, especially for genetically modified organisms (GMOs) and biopharmaceuticals, pose challenges for companies seeking commercialization. These bottlenecks not only increase operational costs but also impede innovation and market growth.

According to industry reports from the Federation of Indian Chambers of Commerce & Industry (FICCI), regulatory compliance issues contribute to significant delays in product launches, affecting market expansion.

Limited Infrastructure and Skilled Workforce

Despite advancements, India’s biotechnology sector grapples with infrastructural inadequacies and a shortage of skilled professionals. Insufficient laboratory facilities, inadequate manufacturing capacities, and a lack of state-of-the-art infrastructure hamper the scale-up and commercialization of biotech products.

Moreover, the shortage of trained scientists, technicians, and researchers poses a challenge to industry growth. The need for specialized skills in areas such as genomics, bioinformatics, and molecular biology remains unmet, affecting the sector’s competitiveness.

Data from the National Skill Development Corporation (NSDC) indicate that the biotechnology sector faces a skilled workforce gap of over 20%, highlighting the urgent need for capacity building and talent development initiatives.

India Biotechnology Market: Opportunities

Growing Biopharmaceuticals and Bioinformatics Sector

India’s biopharmaceutical industry is witnessing rapid growth, driven by increasing healthcare expenditure, a large patient pool, and supportive government initiatives such as the National Biopharma Mission.

According to the Department of Biotechnology, Government of India, the biopharmaceutical market in India was valued at approximately $4.4 billion in 2020, and it is expected to reach $12.8 billion by 2025, representing a CAGR of 23%. Further India is emerging as a hub for bioinformatics, leveraging its skilled workforce and advanced IT infrastructure.

The Bioinformatics Industry in India is projected to grow significantly, supported by government initiatives like the Biotechnology Information System Network, leading to collaborations between biotech and IT sectors. The Indian Bioinformatics market was valued at $510 Billion in 2020, and it is expected to surpass $1 billion by 2025, indicating substantial opportunities in this niche segment.

Biotechnology Research and Development

India boasts a strong base of scientific talent and research infrastructure, fostering innovation in biotechnology. The country’s expenditure on R&D in biotechnology has been steadily increasing. As per the Department of Biotechnology, India’s biotechnology research expenditure reached approximately $2.9 billion in 2021, demonstrating a commitment to innovation and technological advancement.

India Biotechnology Market: Segmentation Analysis

India Biotechnology market is segmented by technology and application.

Based on technology, India Biotechnology Market is segmented into Tissue Engineering and Regenerative Medicine, Cell Based Assays, Chromatography, Polymerase Chain Reaction Technology (PCR), DNA Sequencing, Nanobiotechnology, Fermentation, and Others. Among all these segments, Tissue Engineering and Regenerative Medicine held the highest market share in 2023.

Tissue engineering and regenerative medicine are at the forefront of biotechnological advancements, offering potential solutions for various medical conditions, including organ failure and tissue damage. This segment is often supported by significant research funding and interest from both academia and industry.

Nanobiotechnology is rapidly gaining traction due to its interdisciplinary nature, combining nanotechnology and biotechnology to create innovative solutions for drug delivery, diagnostics, and other healthcare applications. The potential for precise targeting and enhanced efficacy makes it a promising area for growth.

Based on technology, India Biotechnology Market is segmented into Healthcare Biotechnology, Agricultural Biotechnology, Industrial Biotechnology, and Environmental Biotechnology. Among all these segments, Healthcare Biotechnology held the highest market share in 2023.

Healthcare biotechnology encompasses a wide range of applications such as pharmaceuticals, diagnostics, personalized medicine, and medical devices. With increasing healthcare expenditure and the demand for advanced medical solutions in India, this segment tends to lead due to its direct impact on improving human health.

Agricultural biotechnology plays a crucial role in addressing food security challenges, increasing crop yield, and developing pest-resistant crops. With the growing population and the need for sustainable agriculture practices in India, there is a rising demand for biotechnological interventions in the agricultural sector, making this subsegment the fastest-growing one.

Report Scope

India Biotechnology Market: Regional Analysis

India’s biotechnology market is witnessing dynamic growth, fueled by various regional factors. In southern India, particularly in Bangalore and Hyderabad, the presence of numerous biotech parks, research institutes, and academic institutions like the Indian Institute of Science and the Centre for Cellular and Molecular Platforms (C-CAMP) fosters a vibrant ecosystem for biotech innovation.

Additionally, the favorable regulatory environment and government initiatives such as the Biotechnology Industry Research Assistance Council (BIRAC) further stimulate growth.

Moving to western India, Maharashtra emerges as a key player with Mumbai and Pune housing prominent biotech clusters. Mumbai’s focus on pharmaceuticals and Pune’s strength in research and development contribute significantly to the region’s biotech landscape. The state’s proactive approach to promoting biotech through incentives and infrastructure development enhances its attractiveness for biotech investments.

In northern India, the National Capital Region (NCR) stands out with its growing biotech presence, driven by initiatives like the Biotech Park in Faridabad and research institutions in Delhi. Government collaborations and investment incentives in states like Uttar Pradesh and Haryana further bolster the region’s biotech potential.

Eastern India, although emerging, shows promise with initiatives like the Kolkata Biotech Park and the biotech ecosystem developing in Odisha. However, infrastructure development and investment in R&D are imperative for unlocking the region’s full biotech potential. Overall, India’s biotechnology market reflects a diverse landscape shaped by regional strengths and collaborative efforts driving innovation and growth.

India Biotechnology Market: Recent Developments

• In December 2023, Reliance Life Sciences received USFDA approval for a generic Insulin Glargine injection. This marks a significant development for India’s biosimilars industry. Reliance’s affordable version of Lantus (Insulin Glargine) can potentially increase access to this critical diabetes medication for patients in India and abroad.

• In November 2023, Bharat Biotech announced successful Phase 3 trials for its chikungunya vaccine. This indigenous vaccine offers hope for preventing chikungunya, a mosquito-borne viral infection prevalent in India. The successful trials pave the way for regulatory approval and potentially a major public health intervention.

• In October 2023, Biocon signed strategic partnership with Merck for biosimilar development. This collaboration between a leading Indian biotech firm and a global pharma giant signifies a trend of international recognition for Indian capabilities. The partnership focuses on developing and commercializing biosimilars for global markets.

• In September 2023, Government of India launched Mission Biotechnology 2.0. This initiative aims to further accelerate India’s biotech sector by promoting innovation, research, and entrepreneurship. The mission focuses on areas like affordable healthcare, biomanufacturing, and bioagriculture.

• In August 2023, Strand Genomics raised $25 Billion in Series C funding. This funding round reflects the growing investor confidence in Indian biotech startups. Strand Genomics, a precision oncology company, will utilize these funds to advance its liquid biopsy technology for early cancer detection.

List of the prominent players in the India Biotechnology Market:

• Serum Institute of India
• Biocon Ltd.
• Panacea Biotech Ltd.
• Bharat Serums and Vaccines Limited
• Dr. Reddy’s Laboratories Ltd.
• Shanta Biotechnics Limited
• Cipla Ltd
• Sun Pharmaceutical Industries Ltd.
• Zydus Cadila Healthcare Ltd.
• Torrent Pharmaceuticals Ltd.
• Divis Laboratories Ltd.
• Jubilant Life Sciences Ltd.
• Aurobindo Pharma Ltd.
• Cadila Healthcare Ltd.
• Intas Pharmaceuticals Ltd.
• Strides Shasun Ltd.
• Ajanta Pharma Ltd.
• Glenmark Pharmaceuticals Ltd.
• Lupin Ltd.
• Piramal Enterprises Ltd.
• Others

These key players are adopting various organic and inorganic growth strategies such as mergers & acquisitions, joint ventures, expansion, strategic alliances, new product launches, etc. to enhance their business operations and revenues.

The India Biotechnology Market is segmented as follows:

By Technology

• Tissue Engineering and Regenerative Medicine
• Cell Based Assays
• Chromatography
• Polymerase Chain Reaction Technology (PCR)
• DNA Sequencing
• Nanobiotechnology
• Fermentation
• Others

By Application

• Healthcare Biotechnology
• Agricultural Biotechnology
• Industrial Biotechnology
• Environmental Biotechnology