Biotechnology is one of the rapidly evolving sectors in the global economy. It is estimated that by 2025 the global biotechnology market will reach $2trillion. The advancement of biotechnology industry builds the groundwork for the country’s indelible economic development.
Biotechnology is an integrative arena, combination of biology and technologies to wield living organism and biological systems to create products that develop various sectors. Biotechnology is segregated into two wide categories that are R&D in Biological Sciences and Industrial Processes. The most significant developments and innovations in biotechnology and related areas are stem cells technology, natural alternatives to pesticides, sequencing technology, etc.
The biotechnology market in India is classified into bio-industrial, bio-informatics, bio-pharma, bio-agriculture, and bio-services. India has the third largest biotech industry across the Asia Pacific region and is on the verge to enter a new era. In India, the biotechnology sector is watched by two key agencies; ‘The Department of Biotechnology, Ministry of Science & Technology, Government of India’ and ‘The Association of Biotechnology Led Enterprises.’ The Indian biotechnology market is expected to grow at an average rate of 30% a year and is projected to generate $100 billion by the end of 2025.
India already possesses the potential and vivacious scientific workforce, infrastructure, equipment required to develop its bio-economy. Biotechnology market in India allows economic development and growth of the people in India and across the globe. The market holds the capability to describe the food, environmental, substantial healthcare, and other censorious issues in the country.
The major reasons responsible for the growth are the outsourcing activities, increasing investments, government’s concern, and exports. The healthcare system in India is decentralized and posses very less stability in the enforcement of standards. However concrete steps are taken in the budget passed on July 2014, focusing on the requirement to enhance the investment in the sector by developing and boosting the size of the biotech congregate in Bangalore and Faridabad to global level, by the aid of global partnership to erupt model-organism resources for stem cell biology, disease biology, and high-end electron microscopy. Moreover, initiatives are taken to set up centers of academic excellence, national research laboratories, and several other institutes in various sectors is boosting the biotechnology market in India.
Currently, increase in the venture capital and entrance of start-up companies are the trends in the Indian biotechnology market. In the past years, Sanofi acquired Hyderabad-based Shantha Biotech for $783 million in 2009. bioMerieux purchased 60 percent stake in the Hyderabad-based firm RAS Life Sciences in 2012 for $1.6 million. Additionally, some licensing deals had also taken place from Aurigene, Connexios, and Curadev.
Global partnerships concealed by India’s leadership will revolutionize the Delhi-based International Centre for Genetic Engineering and Biotechnology (ICGEB) into a global leader in biotechnology and life science. This concept took a boost in 2014 with the emergence of “Make in India,” program, an initiative of the government to embolden the companies to produce their products in India. In addition, in terms of volume, India holds 8% of the overall generics market is a major opportunity for biotechnology market in India. The global players present in the India biotechnology market are Sanofi Aventis (France), Fresenius (Singapore), Endo Pharmaceuticals (USA), Hospira (USA), Abbot Laboratories (USA), and Mylan Inc. (USA).
All the above factors integrate to bolster each other and create a firm base representing the potential of new business in India biotechnology market. The market is expected to testify tremendous development in regards to revenue and is pacing on an indisputable path of success.
Author: Komal Surana
Sr. Content Writer and Editor, Inkwood Research