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Editors Pick
Biotechnology is becoming one of India’s most important technology and economic opportunities. What was once largely associated with laboratories, microscopes and culture plates has evolved into a multidisciplinary industry where biology intersects with artificial intelligence, data science, engineering, advanced manufacturing and computation.
For India, this transformation has implications far beyond healthcare. A stronger biotechnology ecosystem can support affordable medicines, reduce import dependence, build domestic manufacturing capabilities, create high-value employment and open new export opportunities.
The scale of the opportunity is already visible. According to the India BioEconomy Report 2026, India’s bioeconomy reached $195.3 billion in 2025, up from $165.7 billion in 2024, representing 18% year-on-year growth. Between 2020 and 2025, the sector more than doubled, recording a compound annual growth rate of 17.8%.
From Pharmaceuticals to a Broader Bioeconomy
India’s established pharmaceutical industry provides an important foundation for biotechnology. The country has built significant capabilities in generic medicines, vaccines and pharmaceutical manufacturing. The next phase is increasingly centred on biologics, biosimilars, precision medicine, genomics, diagnostics, cell and gene therapies and advanced biomanufacturing.
Government policy is also moving in this direction. The BioE3 Policy, approved in 2024, focuses on high-performance biomanufacturing across areas including bio-based chemicals, bioplastics, APIs and enzymes; functional foods and smart proteins; precision biotherapeutics; climate-resilient agriculture; biofuels and carbon capture; and futuristic marine and space research.
The policy is designed to connect scientific discovery with pilot-scale and commercial manufacturing. In 2026, the government said more than 2,000 proposals had been received under BioE3 calls, with more than 270 projects recommended for funding across discovery, application-oriented research and scale-up.
This transition is important because scientific capability alone does not create a biotechnology industry. Discoveries need laboratories, clinical validation, regulatory pathways, manufacturing infrastructure, capital and customers before they become products.
Biologics and Biosimilars: A Major Healthcare Opportunity
One of India’s clearest opportunities lies in biologics and biosimilars. These products are becoming increasingly important in the treatment of cancer, autoimmune diseases and other complex conditions.
The Union Budget 2026–27 announced Biopharma SHAKTI, with an outlay of ₹10,000 crore over five years, aimed at strengthening India’s domestic ecosystem for biologics and biosimilars. The programme includes proposals around discovery funding, biopharma research networks, clinical trial infrastructure and manufacturing capabilities.
This matters for both healthcare access and industrial competitiveness. Building capabilities across discovery, development, clinical research and manufacturing can help Indian companies move beyond producing established medicines towards developing and commercialising more complex biological products.
The government has also articulated an ambition for Biopharma SHAKTI to support the launch of 100 biologics by 2047.
Genomics, Diagnostics and Precision Medicine
Another major frontier is the convergence of biotechnology with genomics and artificial intelligence.
India’s large and genetically diverse population provides an important environment for genomic research, diagnostics and personalised medicine. Advances in sequencing, computational biology and AI are creating possibilities for earlier disease detection, better risk assessment and more targeted treatment.
Government initiatives have identified genome diagnostics, synthetic biology and biomolecular design among priority areas for Bio-AI hubs.
The opportunity, however, extends beyond technology. Genomic medicine requires reliable datasets, high-quality laboratories, appropriate consent and privacy frameworks, trained professionals and affordable access. Building public trust will be as important as building computational infrastructure.
Cell and Gene Therapy: From Research to Regulation
Cell and gene therapies represent another area where India needs to move from scientific capability towards scalable clinical and manufacturing ecosystems.
In July 2026, the government amended the Drugs Rules, 1945 to bring cell or stem-cell-derived products, gene therapeutic products and xenografts under the Central Licensing Authority framework.
Such regulatory development is significant because advanced therapies require specialised manufacturing, quality control, clinical expertise and regulatory oversight. India’s ability to establish predictable pathways across these areas will influence how quickly domestic innovations can progress from laboratories to patients.
The Challenge: Scaling Innovation
India’s central challenge is no longer simply producing scientific ideas. It is converting those ideas into globally competitive products.
Biotechnology typically requires long development cycles and substantial capital. Start-ups may need years of research before reaching commercial scale. Manufacturing biological products also requires specialised facilities, quality systems and highly trained talent.
This is where shared infrastructure can make a difference. BioE3’s emphasis on Biofoundries, Biomanufacturing Hubs and Bio-AI Hubs is intended to provide researchers, start-ups, SMEs and industry with access to infrastructure needed for translational research and scale-up.
BIRAC’s programmes are also supporting the start-up ecosystem. Its 2026 report highlights funding, incubation and commercialisation initiatives designed to move biotechnology innovations from early-stage research towards products and companies.
Where India Needs to Go Next
The next stage of India’s biotechnology journey should focus on building an integrated ecosystem rather than isolated strengths.
India needs stronger links between universities, hospitals, research institutions, start-ups and large pharmaceutical and manufacturing companies. Clinical research infrastructure must expand alongside scientific research. Regulatory processes need to remain rigorous while becoming predictable and efficient. Long-term capital is essential for companies working on technologies that may take years to commercialise.
Talent will be equally important. The biotechnology workforce of the future will need expertise not only in biology and medicine but also in AI, data science, engineering, computational biology, manufacturing and regulatory science.
Most importantly, India needs to strengthen its ability to manufacture at scale. The country has already demonstrated that it can compete globally in pharmaceuticals. The opportunity now is to build comparable strength across biologics, biosimilars, advanced therapies, diagnostics and emerging bio-based industries.
The Road Ahead
India’s biotechnology story is moving from laboratory science towards an integrated bioeconomy. Healthcare remains one of its most important applications, but the impact will extend to manufacturing, agriculture, climate technologies, food, industrial biotechnology and potentially space and marine research.
The numbers indicate strong momentum, while initiatives such as BioE3 and Biopharma SHAKTI are attempting to address the infrastructure, research and manufacturing requirements of the next phase.
The real measure of success will be whether India can consistently convert scientific knowledge into affordable products, globally competitive companies, skilled employment and stronger healthcare outcomes.
For India, biotechnology is therefore not simply another emerging technology sector. It is an opportunity to build a deeper connection between science, healthcare, manufacturing and economic growth.
Sources & References
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