India can build a $1.2-trillion bioeconomy by 2047

Source: The post “India can build a $1.2-trillion bioeconomy by 2047” has been created, based on “India can build a $1.2-trillion bioeconomy by 2047” published in “The Hindu” on 05th December 2025.

UPSC Syllabus: GS Paper-3- Economy

Context: India’s bioeconomy has grown significantly, from $10 billion in 2014 to over $165 billion in 2024. With the right reforms, India has the potential to surpass $1.2 trillion by 2047, contributing significantly to the vision of Viksit Bharat. Achieving this goal requires not only scientific excellence but also substantial reforms in capital markets and regulatory systems. These reforms are critical to ensuring that India can become a global biotech leader, much like China has.

Current Status of India’s Bioeconomy

1. Biotechnology is a capital-intensive sector driven by deep science and long development cycles.
2. Globally, biotech companies list on public markets even at the research stage to secure patient capital.
3. However, in India, pre-revenue or research-stage biotech companies cannot list, which limits their access to funding.
4. This has forced many high-potential Indian biotech startups to relocate abroad, stifling domestic growth.

China’s Success Model

1. China provides a valuable case study in how capital-market innovation and regulatory reform can foster rapid biotech growth.
2. The STAR Market in Shanghai and the Biotech Chapter in Hong Kong allowed early-stage biotech firms to list without profitability requirements.
3. This policy has mobilized billions in capital, with China attracting $45 billion in life sciences venture capital between 2018 and 2022—nearly 10 times more than India.
4. This influx of capital has powered China’s rise as a global leader in biotechnology.

Challenges in India’s Bioeconomy

1. Capital-Access Challenges: In India, the inability of biotech companies to list during their early stages restricts their access to capital.
   1. This situation makes it difficult for innovators to raise funds and scale their businesses, resulting in the relocation of promising startups to countries with more favorable capital-market conditions.
2. Regulatory Bottlenecks: India’s regulatory system is slow and fragmented. Approval timelines for First-in-Human (FIH) trials are lengthy, and each phase of clinical trials requires separate reviews, leading to delays.
   1. Additionally, regulatory bodies like the CDSCO lack the scientific capacity to evaluate emerging technologies, such as mRNA vaccines and gene therapies, which slows down innovation.

Proposed Solutions

1. Capital-Market Innovation: India needs to create a dedicated listing board for biotech companies, similar to NASDAQ, the STAR Market, and Hong Kong’s Biotech Chapter. This reform would:
   1. Allow pre-revenue and research-stage biotech companies to list, providing them with access to patient capital.
   2. Mobilize domestic capital and attract global investors.
   3. Prevent Indian biotech firms from relocating abroad by providing them with the funding they need to scale in India.
2. Regulatory Reforms: India must modernize its regulatory framework to align with global standards and accelerate approval processes. Key reforms include:
   1. Empowering ICMR: The Indian Council of Medical Research (ICMR) should take responsibility for reviewing clinical trial protocols for new drugs, vaccines, and biologics. ICMR’s research capabilities and ethical infrastructure make it well-suited for this task.
   2. Role of CDSCO: The Central Drugs Standard Control Organization (CDSCO) should focus on final approvals, ensuring good manufacturing practices (GMP) compliance, and pharmacovigilance. By separating scientific review and regulatory oversight, approval timelines can be reduced, and scientific rigor can be improved.

Expected Outcomes of the Reforms

1. Faster Innovation: The proposed capital-market innovations will provide biotech firms with the funds they need to accelerate research and development. Regulatory reforms will shorten approval timelines by 40-60%, enabling faster commercialization of new technologies.
2. Global Leadership in Biotechnology: With these reforms, India can become a global leader in emerging biotech fields such as mRNA, gene therapy, biosimilars, and biologics. India could also establish itself as a hub for clinical research and bio-manufacturing, creating millions of high-value jobs and contributing to global healthcare innovation.

Way Forward

1. Capital-Market Innovation: Create an Innovation & Biotech Board to allow pre-revenue biotech companies to list and access patient capital.
2. Regulatory Reforms: Restructure the regulatory system by empowering ICMR for scientific reviews and assigning CDSCO responsibility for final approvals and compliance.
3. Encourage Investment: Promote investment in biotech research and development to drive growth in the sector.

Conclusion: India’s bioeconomy holds immense potential, but realizing the $1.2 trillion target by 2047 requires substantial reforms in capital markets and the regulatory system. By establishing a dedicated listing platform for biotech companies and streamlining the regulatory approval process, India can foster a thriving biotech ecosystem. These reforms will allow India to transition from being the “pharmacy of the world” to the “lab of the world,” contributing significantly to global health and economic progress.

Question: Discuss the challenges faced by India’s bioeconomy and the proposed solutions, particularly in capital-market innovation and regulatory reforms. How can these reforms help India become a global leader in biotechnology by 2047?