Frost & Sullivan white paper discusses government incentives and investments leading the transition to a bio-economy
India is currently among the top 12 biotechnology destinations in the world and ranks third in the Asia-Pacific region, finds a white paper published by Frost & Sullivan.
In spite of the economic downturn in 2013 to 2014, the biotechnology sector has experienced rapid growth helped by increasing foreign investments, supportive government policies, increasing exports and a skilled workforce.
India's biotechnology industry is in a great position to transition to bio-economy, which will allow the country to re-establish cornerstones defining the competitiveness of existing sectors, providing them with a favourable setting to operate and grow.
The Frost & Sullivan white paper, entitled India Ripe for Biotech Industry Growth, suggests that a fertile ecosystem will enable India to enter the biologics market, which is expected to reach US$314.8bn at a compound annual growth rate (CAGR) of 8.4%.
India is already a global leader in the world generics market, and with its strong positioning to provide affordable healthcare, biosimilars will be a perfect fit for Indian companies, the white paper says.
According to Frost & Sullivan, India has the essential ingredients for success, including:
Frost & Sullivan Partner and Transformational Health Senior Vice President Reenita Das, said: 'India has world-class strengths in chemical, biological and environmental sciences alongside a remarkable process engineering community.
'These equip the Indian research community to provide the foundation, understanding and breakthroughs to advance large-scale opportunities.'
She added: 'The industry is expected to witness a growth rate of more than 20% in the biotechnology sector and presents lucrative investment opportunities for global companies.'
The creation of competitive products and services as well as legislation will direct the major shift from biotechnology to a bio-economy in India. It is therefore vital that new policy actions support the growth of a sustainable bio-economy, the paper says.
It is also essential to address the critical issues, including: establishing a simplified and efficient business process to encourage large-scale foreign direct investment; and re-evaluating biodiversity laws which are having a serious impact on entrepreneurial efforts to create new industries and jobs locally.
'Indian biotechnology expertise promotes the creation of new businesses from pharmaceutical research, medical technology, healthcare IT and healthcare service innovations,' said Das.
'In addition, India's excellent clinical trials and manufacturing infrastructure, as well as its position with Trade-Related Aspects of Intellectual Property Rights (TRIPS), provide the industry with an opportunity to thrive.'