India’s Bioeconomy Nears $200 Billion, Driven by Innovation and Policy Push
NEW DELHI — India’s bioeconomy is approaching the $200 billion mark, reflecting rapid growth fueled by policy support and a rising pipeline of innovation, according to a new report released Tuesday.
The report by Endiya Partners estimates that the sector has expanded from about $10 billion in 2014 to more than $195 billion in 2026, now contributing nearly 5 percent to the country’s gross domestic product.
India, long known as the “pharmacy of the world” for supplying nearly 20 percent of global generic medicines and more than 60 percent of vaccines, is now shifting toward an innovation-driven biopharma ecosystem focused on novel therapeutics and deep-tech platforms.
The report said the country is at a critical inflection point, supported by favorable policies, regulatory reforms, and increasing global recognition of its clinical-stage research capabilities.
Key government initiatives — including the proposed ₹10,000 crore Biopharma Shakti program and the ₹1 lakh crore Research, Development and Innovation Fund — are expected to accelerate the development of a stronger innovation ecosystem.
Recent regulatory changes, such as a 45-day approval timeline and streamlined notification pathways, could help reduce administrative delays and shorten drug development cycles by up to four months, the report noted.
At the same time, global shifts in the biopharma industry are creating new opportunities for India. Rising research and development costs — estimated at about $2.2 billion per drug — and a looming $300 billion patent cliff are pushing companies to seek more cost-efficient research environments.
The report also highlighted a competitive advantage for Indian biotech firms, describing a “recruitment alpha” that allows faster patient enrollment in clinical trials and enables drug candidates to reach Phase II stages at lower costs compared with global peers.
This advantage allows companies to pursue multiple drug development programs simultaneously, potentially improving overall success rates.
However, the report cautioned that challenges remain, including gaps in pilot-scale manufacturing infrastructure, limited late-stage funding, talent shortages, and the need for stronger translational research capabilities.
Despite these hurdles, India’s biopharma ecosystem — which includes more than 2,500 startups, around 100 incubators, and over 600 research institutions — is well positioned for continued expansion.
“With sustained policy support and deeper ecosystem collaboration, India has the potential to emerge as a global hub for cost-efficient, high-quality biopharma innovation,” the report said. (Source: IANS)
