Panorama

Dr. S. Natesh
Department of Biotechnology, Govt. of India
(natesh.dbt@nic.in)

The Indian biotechnology sector is projected to cross the US $ 2 billion mark during 2006-07. Although this answers for only a little more than 1% share of the global biotech pie, the encouraging sign is that the sector is riding on a healthy growth rate of over 35% annually over the last five years. The prognosis is good and consensus among industry leaders and policy makers is that, with proper fiscal and policy initiatives, the sector could easily scale the US $ 25 billion figure by 2015

There are today about 300 biotech companies in India with the top 10 accounting for 50% of the revenue generated, and R&D investment of the top five exceeding US $ 300 million. Geographically, the biotech companies have developed in three major clusters across the country. The largest in terms of revenue generated is the western cluster (Ahmedabad, Aurangabad, Mumbai and Pune), followed by the southern cluster (Bangalore, Chennai and Hyderabad) and the northern cluster (Delhi, Gurgaon and Noida). Exports stood at Rs 2,001 crores and contributed to 42.17% of the total business with bio-pharma products currently contributing to 73.15% of the exports. Domestic business accounted for Rs 2,744 crores. The key opportunity segments are: bio-pharmaceutical (vaccines, therapeutics, diagnostics) bio-agri (transgenics, biofertilizers, biopesticides) bio-industry, bio-informatics and bio-services (R&D, clinical trials, and manufacturing on contract). The bio-agri segment registered the highest growth rate during the year at 154%, followed by bio-services (54.6%), bio-industry (34.55%), bio-pharma (30%) and bio-informatics (25%).

Several factors have contributed to the current upbeat feeling about India's biotech sector. Among the strengths we can count are our wealth of biodiversity; a sizeable English-speaking scientific workforc, robust IT base, reasonably good infrastructure network, well-positioned pharma industry, strong MNC presence, and a large, diverse, therapy-naïve population with varying gene pool.                 The Government, both at the centre and in the states, has provided several fiscal and other incentives to the sector in terms of tax holidays, capital subsidies, creation of biotech parks, special economic zones, incubators etc. Besides the Department of Biotechnology (DBT), which is the major supporter of R&D related to biotechnology, the Department of Science & Technology

(DST), Council of Scientific & Industrial Research (CSIR), Indian Council of Agricultural Research (ICAR), and Indian Council of Medical Research (ICMR), all fund public sector research in life sciences and biotechnology Private firms can approach DST's Technology Development Board (http://www.tdbindia.org/), which offers soft loans with minimum interest, DBT's Small Business Innovation Research Initiative (http://dbtindia.nic.in/SBIRI/SIBRI_main-F.html), which funds early/late stage research, or CSIR's New Millennium Indian Technology Leadership Initiative program (http://www.csir.res.in/csir/external/heads/collaborations/NM.pdf) that was set up to boost public-private partnerships. India's IPR regime has become fully TRIPS compliant to promote innovation. A single-window biotech regulatory authority is on the anvil to ensure a science-based efficient process.

Indian biotech companies have not only been resourceful in leveraging various financing opportunities from both domestic and international sources but also proactive in establishing and maintaining collaborations and partnerships in India and abroad. They have also aimed to become competitive by patenting products and technologies on a global basis.

However, much still needs to be done if India is to assume its rightful role in the global bioeconomy. The draft National Biotechnology Development Strategy (prepared by DBT after nearly two years of consultations with all stakeholders) has identified a number of issues that require urgent attention in the quest to create a favorable and enabling environment for enterprise creation and private sector development. Some of the issues that need to be urgently translated into policies and actions are: a) creating a pool of technologically skilled human resource in adequate numbers; b) capacity building in areas such as IPR management, technology transfer and clinical trials etc.; c) creating institutions with a new ethos for seamless conversion of knowledge into products and processes; d) greater support to industry, specially small and medium sector enterprises; e) putting in place a world class regulatory system and ensuring adequate training for regulatory personnel.

In short, we need to build a culture of innovation and enterprise from the bottom up with complementary help from top down.