India is on the cusp of turning an impact on the bio-economy

India is on the cusp of turning an impact on the bio-economy: The Prime Minister

In News:

• Premier Secretary Narendra Modi recently said that the country's bio-economy has risen eight times over the last eight years, from 10 billion dollars in the last eight years to an estimated the figure of $80 billion" and that India is "not far away from reaching the top 10 countries in the biotech ecosystem globally."

Today's news article:

• About Bioeconomy (Meaning that there is a need in bioeconomy, Bioeconomy in India, etc.)
• About BIRAC (Purpose, Functions, Contribution, etc.)
• News Summary

About Bioeconomy:

• The bioeconomy, also known as the biobased economy is an innovative model for industry as well as the economy.
• Bioeconomy is described by the term "an economy where the basic building blocks for materials, chemicals, and energy are derived from renewable biological resources."
• It is the process of making use of sustainable renewable biological resources to create energy, food, and industrial products.
• It also involves breaking down plants into their components in the most efficient way possible and then transforming them into useful substances.

Need for Bioeconomy:

• The shift of a fossil-fuel-centered bio-based economy is anticipated to decrease our dependence of fossil fuels and create greater sustainability and help in protecting the environment and the climate..
• It also unlocks the potential in the millions of tonnes of biological waste and other residual materials.
• In recent times bioeconomy has become the focus of both technological and political attention at a national and international level.

Size of India's Bioeconomy:

• As per India's Bioeconomy Report 2021, which was published in 2021 by Biotechnology Industry Research Assistance Council (BIRAC) 2021, published by Biotechnology Industry Research Assistance Council (BIRAC). The Bioeconomy of the nation has grown to more than 12.3 percentage in 2020 to be $70.2 billion .
  • The Bioeconomy in 2019 was $62.5 billion.
• The growth in revenue has been mainly attributed to the biopharma sector.
• The proportion of Bioeconomy in the GDP of the country is also increasing consistently over the past few years.
  • The current share is 2.7 percent, which is up from 2.2 percent in the year 2019.

About Biotechnology Industry Research Assistance Council (BIRAC):

• BIRAC is a non-profit public sector company, established by the Department of Biotechnology (DBT).
• The goal to act as an intermediary agency to empower and strengthen the new Biotech company to conduct innovative research and development and address national requirements for product development.
• BIRAC is an inter-university interface and it fulfills its mandate by implementing an array of impacts initiatives, including:
  • Access to risk capital by directing financing,
  • Transfer of technology,
  • IP management and
  • Handholding programs that improve the innovation capabilities of biotech companies and ensure that they are globally competitive.
• In its first eight years of being in existence BIRAC is a pioneer in the field of various networks, schemes and platforms that fill the gaps that exist in the field of innovation research conducted by industry and academia and encourage innovative affordable, high-quality products development using cutting-edge technology.
• BIRAC has formed collaborations with a variety of international and national partners to cooperate and to deliver the key elements of its mission.

Way Ahead:

• The following measures could be adopted by the government to create Biotechnology an industry worth $150 billion in 2025 .
  • Investments - Fine-tuning the PLI Scheme :
    • India has proven to be a strong force in the production of generic drugs and now is leveraging this expertise to manufacture special drugs, vaccines, and biologics.
    • To become a world leader in the field of biologics, we must to increase the capabilities and expertise as well as the infrastructure in the country.
    • The PLI scheme has brought in a range of incentives to encourage self-reliance the production of bulk pharmaceuticals locally as well as encouraging Biopharma companies to advance the value chain with innovation.
    • Instead of adopting a universally applicable method, the government must to refine the PLI program to meet the particular demands of the biopharmaceutical industry.
  • Exports - Incentives for Global Competitiveness :
    • The growth of manufacturing capacity locally should not only be geared towards catering to the local market.
    • Businesses must be able to tap into global markets. To do this, India requires a firm policy that offers incentives for exports.
    • In the SEZ regime they were eligible for tax holidays up to March 31st 2020.
    • In order to stimulate export-oriented industries, SEZ tax holiday benefits have to be reinstated, with a deductibility of 50% of export earnings over the next five years of the units.
  • Start-ups - Facilitating access to capital :
    • The support from the government has resulted in the development of a strong biotech start-up environment.
    • India was home to more than 4,200 biotech start-ups by 2020, which is about 20% more than the year 2019.
    • It must develop a system that will allow these startups to grow.
    • Capital is the lifeblood of startups The government must increase BIRAC funding up to Rs. 3,300 crore each year, to give start-ups the resources to grow.
  • To capitalize on the immense potential of biotech India has to move quickly and the government will need to play a supporting role through the creation of a infrastructure that is financial and physical. and regulatory system.

News Summary:

• In announcing the importance in the work of BIRAC in the growth of bioeconomy industry in India the Prime Minister Narendra Modi said that the sector has grown from 10 billion to $80 billion in the over the last eight years.
• As per the Premier Minister there are five major reasons India is being regarded as an opportunity-rich country in biotech:
  • First, its diversity of people and its diverse climate zones;
  • The second is the nation's highly skilled human capital
  • Third, the ease for doing business India;
  • Fourth, the increasing demands for bio-products within India as well as
  • Fifth, India's biotech industry and its record of great success.
• Each startup that was launched in the country was from the biotech sector, and over 1,100 biotech companies have emerged over the past year.

Thank You