India is among the top 12 biotech destinations in the world and ranks second in Asia, after China. The Indian biotech industry is likely to experience significant growth on the back of increasing economic prosperity, health consciousness and a billion-plus population base. Current estimates value the industry at US$ 7 billion in FY15, which is expected to grow at 30.46 per cent Compound Annual Growth Rate (CAGR) to US$ 100 billion by FY25.
The sector is divided into five major segments: bio-pharma, bio-services, bio-agri, bio-industrial and bio-informatics. Biotechnology industry’s growth in India is primarily driven by vaccines and recombinant therapeutics. Going forward, India also has the potential to become a major producer of transgenic rice and several Genetically Modified (GM) or engineered vegetables.
As on November 2016, Odisha released the draft of its first Biotechnology policy. The state aims to become one of the top five bio-tech hubs in the country. The state government has proposed to set up a fund with investment of US$ 3.73 million and provide land on priority for setting up of biotechnology projects.
The Government of India has taken several initiatives including a biotechnology industry partnership program to develop new technologies and launched a National Rural Healthcare Mission to boost healthcare spending. As per the 12th Five-Year Plan, the government aims to spend US$ 3.7 billion on biotechnology compared to US$ 1.1 billion in the 11th Five-Year Plan to accelerate the pace of research, innovation and development. In addition, the Department of Biotechnology (DBT) has designed the National Biotechnology Development Strategy (NBDS) to strengthen the industry’s human resources and infrastructure while promoting growth and trade. Furthermore, the Government has allowed 100 per cent Foreign Direct Investment (FDI) through the automatic route for manufacturers of drugs and pharmaceuticals.