Why biotechnology can be Indian economy's next success story.
Over the last two-to-three decades, the major success story of the Indian economy has been the stellar growth of its IT industry. But as the dividends from the sector reach the eventual inflection point, India needs to build similar competencies in other industries to ensure sustained growth and prosperity.
It is not acknowledged as often but the biotechnology industry seemed poised to take over the mantle. In the span of a decade beginning in 2007, the industry has grown exponentially in size from about $2 billion to over $11 billion in terms of revenue. By 2025, it is targeted to touch $100 billion.
The biotechnology industry, however, has been impacting Indian lives long before it grew so much in size. Back in the mid-1960s, advancements in biotechnology drove the Green Revolution, which enhanced farm yields and made the country self-sufficient in food production.
A similar contribution from the sector was witnessed in the White Revolution when India became a milk-surplus nation and improved the nutrition level of its citizens.
More recently, the meteoric growth of the Indian pharmaceutical industry is a result of process innovation that has given the country a cost advantage in the manufacture of drugs.
Recently bracelets from Bengaluru saving babies is in headlines. Bracelets named “BABY COLS KILUK” a innovation by Ratul Narain.
Further, the growing energy needs of India's rural areas have been increasingly met by biomass fuel. And organic food grown by the technologies.
These outcomes have been the result of years of concerted efforts by the Indian government to enable the growth of the industry. As early as 1986, Rajiv Gandhi, recognising the potential of biotechnology in the country's development, set up the Department of Biotechnology, making India one of the first countries in the world to have a government department solely dedicated to biotechnology .. An increase in investment towards research and development and building human capital is the most crucial point of action. These initiatives have shifted growth trajectories of countries like China away from India.
As for the challenging IP regime, the government needs to come together with the biopharma industry and chalk out a middle ground that recognises the value of innovation and does not hurt its investment attractiveness. Finally, for the Valley of Death concerns, the government can build a mechanism where funding can be provided for select innovative ideas based on their national importance. Only such action-oriented steps can make biotechnology the next success story of the Indian economy.