India's Biotechnology Sector: From Startup Surge to a Sustainable Ecosystem
UPSC Relevance
Prelims: Science and Technology (Biotechnology, CRISPR, Artificial Intelligence - AI in health); Indian Economy (Foreign Direct Investment - FDI, Production-Linked Incentive - PLI schemes, Startups); Indian Polity and Governance (Key Institutions - Biotechnology Industry Research Assistance Council (BIRAC), Startup India).
Mains:
General Studies Paper 3 (S&T, Economy): Science and Technology- developments and their applications and effects in everyday life; Awareness in the fields of Bio-technology; Achievements of Indians in science & technology; Indian Economy and issues relating to growth, development. This is a perfect case study for the "Startup India" ecosystem and its challenges.
Key Highlights from the News
India's biotechnology sector has seen a significant leap in the number of startups (from 500 in 2018 to over 10,000 in 2025).
Key reasons behind this growth:
Government support like the BioE3 Policy and the target of a $300 billion bioeconomy by 2030.
Startup India, BIRAC funding, and PLI schemes.
India's expertise in manufacturing vaccines and generic medicines.
However, this sector currently faces several challenges.
Main challenges:
Funding Gap: Startups receive funding in the initial stages, but not the large-scale funds required for Phase II clinical trials and establishing manufacturing units.
Fragmented Infrastructure: While there are many incubators, many lack all the facilities a startup needs.
Regulatory Complexities: Regulations related to clinical trials and patents are complex and cause delays.
Suggestions to overcome these challenges:
Establish centers with all facilities in robust clusters instead of being fragmented across different locations.
Form a dedicated biotechnology fund.
Implement "reverse brain drain" schemes to attract Indian scientists abroad.
Reform laws to suit new technologies
COMMENTS