Context: Recently, Biotechnology Industry Research Assistance Council (BIRAC) has launched India BioEconomy Report 2022.

• Along with the report, special Biotech Ignition Grant call for North East Region (BIG-NER) and financial support of up to Rs 50 Lakhs each to 25 startups and entrepreneurs from North East Region to develop biotech solutions were also announced.

About Bioeconomy

• A bioeconomy is defined as “an economy where the basic building blocks for materials, chemicals, and energy are derived from renewable biological resources.”

• UN FAO defines the Bioeconomy as “knowledge-based production and the use of biological resources, processes and methods to provide goods and services in a sustainable manner in all economic sectors”.

• The term bioeconomy became popular in the first decade of the 21st century.

• Its adoption by the European Union (EU) and the Organisation for Economic Co-operation and Development (OECD) as a framework for promoting the use of biotechnology to develop new products and markets increased its popularity globally.

Food systems bio-based products are important aspects of Bioeconomy- this includes:

• Sustainable agriculture

• Sustainable Fishing

• Forestry and aquaculture

• Food and feed manufacturing

• Bioplastics

• Biodegradable clothing

Key highlights of the report

• India’s bioeconomy has reached over USD 80 billion in 2021, registering a 14.1 per cent growth over USD 70.2 billion in 2020.

• India generated USD 219 million of bioeconomy daily, adding USD 80.12 billion in 2021.

• On an average, at least three biotech startups were incorporated every day in 2021 (a total of 1,128 biotech startups set up in 2021) and the industry crossed USD 1 billion in research and development spending.

• In case of sustainable bio-fuel, target year for 20 per cent ethanol blending has been advanced from 2025 to 2023 and this biotech sub-sector has shown two times growth.

• The ethanol production of 3.3 billion litre capacity has doubled to 6.5 billion litres in 2021.

• BT cotton, biopesticides, biostimulants and biofertilizers contributed to about USD 10.48 billion in 2021 for bioeconomy of the country.

• India's bioeconomy is expected to touch US$ 150 billion by 2025 and over US$ 300 billion by 2030.

• The number of Biotech Start-ups in India have increased from 50 to over 5,300 in the last 10 years.

• India has 2nd highest number of USFDA approved manufacturing plants outside the US. 

• India is global leader in the supply of DPT (diphtheria, pertussis, and tetanus), BCG (Bacillus Calmette–Guérin) and measles vaccines and for Covid vaccine also, the nation has demonstrated self-sustenance and also supported several countries.

• India is among the top 3 in South Asia and top 12 destinations for biotechnology in the world, with 3% share in the global Biotechnology industry.

Why do we need a Bioeconomy?

• Human activity has modified the global climate over the last century leading to an increase in greenhouse gas emissions. This has in turn led to an increase in the earth’s average temperature and climate change.

• The climate change impact on food security, human health, migratory flows, biodiversity loss, and rising sea levels, among other aspects, will lead to a decline in productivity and wealth creation, especially in less-developed countries.

• In this context, the bioeconomy will play a key role in the fight against climate change.

Bioeconomy has enormous potential for:

• Creating millions of green jobs in rural and coastal regions.

• Ensuring food security and reducing hydric stress.

• Renewing and modernizing industrial fabrics, introducing innovations in agriculture, aquaculture, forestry, and other industries.

• Reducing atmospheric emissions and dependence on fossil resources, hence aiding in climate mitigation and carbon neutrality.

• It is aligned with SDGs and will help in recovering part of degraded ecosystems and restoring biodiversity.

Bioeconomy is aligned with the SDGs in the 2030 agenda adopted by United Nations

• It influences the achievement of the end of poverty, zero hunger, and the reduction of inequalities.

• It relates to the goals of clean water and sanitation, sustainable cities and communities, and responsible consumption and production.

• It drives sustainable industry and infrastructure, as well as promotes economic growth and decent work.

• It promotes health and well-being and climate action, which benefits underwater life and the life of terrestrial ecosystem life.

Strategy for Bioeconomic growth

Bioeconomic advancement requires a strategic action plan starting from the grass root level of governance along with multilateral efforts:

• Increased investment in research, innovation, and training: Research on bioeconomy issues and their application tends to be disconnected. To avoid this, public-private partnerships should be promoted.

• Strengthening policy coordination and engagement: Increasing synergies and coherence between bioeconomy-related policies, initiatives, and economic sectors is essential.

• Improving markets and competitiveness: This consists of providing the knowledge base needed to make the different sectors of the bioeconomy more sustainable, as well as boosting the development of clean energy.

Indian initiatives for promoting bioeconomy

• The Indian Government has approved the amendments to the National Policy on Biofuels and took decisions to increase biofuel production and advance the introduction of ethanol blended petrol with up to 20% blend from April 2023.

• National Biopharma Mission, ‘Innovate India’ 2017, a Department of Biotechnology (DBT) program worth US$ 250 million, aims to bring together industry and academia to promote entrepreneurship and indigenous manufacturing in biopharma.

• Amid attempts to boost the rural economy by using bio-resources, a ‘National Mission on Bioeconomy’ was launched by the Institute of Bio-resources and Sustainable Development under the Science and Technology Ministry, in 2016.

Road Ahead

• The biotechnology sector has the potential to have a cascading multiplier effect on the overall economic growth of the country. This sunrise sector enables technology-led solutions for Healthcare, Industrial manufacturing, Agriculture, Environment, and Clean Energy.

• The biotech sector particularly for vaccines, diagnostics, and therapeutics has shown to the world that India can fight global challenges like the COVID pandemic from the forefront and contribute with first-in-class and best-in-class solutions not only for itself but for the world.