Biotechnology

The Indian biotechnology sector is one of the fastest growing knowledge-based sectors in India and is expected to play a key role in shaping India's rapidly developing economy. Currently, India holds two per cent share of global market. With numerous comparative advantages in terms of R&D facilities, knowledge, skills, and cost effectiveness, the biotechnology industry in India has immense potential to emerge as a global key player.


The Indian biotech market was estimated at US$ 2.80 billion in 2007–08 and is likely grow at a compound annual growth rate (CAGR) of 30 per cent. India became the fourth largest adopter of biotech crop in the world, displacing Canada, in 2008 and planting Bt cotton on 7.6 million hectares (82 per cent of the total cotton are in the country), according to the International Service for the Acquisition of Agri-biotech Applications (ISAAA). A record five million small and resource-poor farmers planted Bt cotton in 2008, significantly up from only 3.8 million farmers in 2007, the ISAAA said.


According to a report by the Confederation of Indian Industry (CII) and consultancy firm KPMG, the Indian biotechnology sector is likely to become a US$ 5 billion industry by 2010. The report stated, "India is ranked among the top 12 biotech destinations in the world and is the third biggest in Asia-Pacific in terms of the number of biotech companies." India is also gaining importance as a clinical trial destination. The global clinical research outsourcing market is projected to touch US$ 23 billion by 2011, with consultancy firm KPMG estimating that India will corner 15 per cent of this in two years.


A growing number of Indian biotechnology firms are now providing research and development (R&D) services to global pharmaceutical companies. The vaccines' market in India will also lead the demand growth in South-East Asian countries as many new vaccines are set to be launched in five years. Global vaccine sales were US$ 21 billion in 2008 while the Indian market was valued at US$ 360 million, thus, creating major opportunities for Indian biotechnology and pharmaceutical companies.