Why in the News?

The India BioEconomy Report has pegged the value of India’s bioeconomy in 2024 at more than $165 billion, accounting for over 4.2% of the country’s GDP.

What is Bioeconomy?

• Bioeconomy refers to the industrial use of biological resources (plants, animals, and microorganisms) and the replication of natural biological processes to produce goods and services.
• It incorporates sustainable methods to replace traditional, resource-intensive production systems.
• Applications:
  • Biofuels, bioplastics, medicines, synthetic biology, and agriculture are key sectors where bioeconomy is being applied.
    • Ex. Ethanol produced via microorganisms from crops like sugarcane and corn is a prime example of bioeconomy’s impact on reducing reliance on hydrocarbon-based fuels.

Key Highlights of the India Bioeconomy Report:

• Growth in Market Value:
  • India’s bioeconomy has nearly doubled in value from $86 billion in 2020 to $165 billion in 2024.
  • There has been a 90% increase in the number of companies in the bioeconomy sector, from 5,365 in 2021 to 10,075 in 2024, with projections to double again by 2030.
• Key Sectors:
  • Industrial Sector: Contributes nearly $78 billion, driven by biofuels and bioplastics.
  • Pharmaceuticals: Accounts for 35% of the total bioeconomy value, primarily driven by vaccines.
  • Research and IT: The fastest-growing segment, especially in biotech software development and clinical trials.
• Regional Contribution:
  • Maharashtra, Karnataka, Telangana, Gujarat, and Andhra Pradesh account for over two-thirds of the bioeconomy value.
  • The Eastern and Northeastern regions contribute less than 6%.
• Global Comparison:
  • India’s bioeconomy share in GDP (4.2%) is comparable to countries like the US and China.
  • However, countries like Spain and Italy have bioeconomy contributing more than 20% of their GDP.
• Policy Direction:
  • The BioE3 policy (Biotechnology for Economy, Environment, and Employment), launched in 2024, aims to establish India as a global hub for bio-manufacturing and a major center for biotech R&D.
  • The policy targets growth in areas such as bio-based chemicals, functional foods, precision biotherapeutics, marine and space biotechnology, and climate-resilient agriculture.

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