India Bio-Economy Report

Prelims (GS - I) – Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc.

Mains (GS - III) – Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

Why in News?

India Bio-Economy report has pegged the value of India’s bioeconomy in 2024 at more than $165 billion, accounting for over 4.2% of the country’s GDP.

• Bio-economy – Refers to the industrial use of biological resources (plants, animals, and microorganisms), and the replication of natural biological processes in the production of goods and services.
• Released by – Department of Biotechnology.
• Key findings – The report shows that the value of India’s bioeconomy nearly doubled in the last 5 years, from 2020 to 2024.

• The number of companies operating in the bioeconomy has gone up by almost 90% in the last 3 years, from 2021 to 2024.
• This number is projected to double again by 2030, by which time such companies would employ close to 35 million people.
• Nearly half the value of the bioeconomy was generated in the industrial sector, for the development and use of biofuels and bioplastics, among other things.
• The pharma sector accounted for another 35% of the total value, with vaccines the major contributor.
• But the fastest growing segment in 2024 was research and IT, which includes biotech software development, clinical trials, and bioinformatics that helps in areas such as drug research.
• The report showed that only 5 states — Maharashtra, Karnataka, Telangana, Gujarat and Andhra Pradesh, accounted for more than two-thirds of the value generated in the bioeconomy.
• The entire eastern and northeastern region generated less than 6% of the total value.
• Achievements in Bioeconomy – India is among the top producers of vaccines globally and developed the world’s first DNA COVID-19 vaccine.
• Ethanol blending largely increased from 2014 to 2024, with a target of 20% by 2025.
• The sector contributes 4.25% to GDP with a compound annual growth rate (CAGR) of 17.9% over the past four years.
• While the 4.2% share in the overall GDP was comparable to figures in the United States and China, the bioeconomy of countries like Spain and Italy accounts for more than 20% of their GDP.

Reference

The Indian Express | India Bio-Economy Report