Priyank Kharge.
Credit: DH photo
Bengaluru: Karnataka sees a potential compound average growth rate (CAGR) or 19 per cent for its biotech industry, and the state’s ‘bio-economy’ is expected to triple to $100 billion by 2013, as per an official report released by IT-BT Minister Priyank Kharge on Wednesday.
The state’s BioEconomy posted an impressive growth of $31 billion in 2023 from $22 billion in 2021, and it accounts for a fifth of India's BioEconomy.
The biotech sector’s growth added $9 billion to its economic value aided by innovative enterprises as well as an influx of capital contributing to research and development (R&D) and commercialisation efforts. Moreover, Karnataka attracted more than 30 per cent of investments in the sector nationally in 2023, in turn increasing its share in India’s BioEconomy to 21 per cent, as per the report.
“The bioeconomy in Karnataka has experienced extraordinary growth. The contribution of the innovative and entrepreneurial spirit of startups has been significant in shaping the future of Karnataka's bioeconomy and we are proud to support and nurture their efforts,” Kharge said at the launch.
The state saw 202 new biotech startups in 2023, a staggering 113 per cent increase from 2021. This has pushed the total number of biotech startups in the state to 1,000. Regional players like Ballari, Belagavi, and Mysore have played an important role in contributing to this sector, the report stated.
Further, the report also highlighted potential growth areas like Chamarajanagar, Chickballapur, and Koppal which have exhibited signs of activity and could become major contributors in Karnataka’s Bioeconomy. While the BioAgriculture sector has been a consistent performer, Bt Cotton has emerged as a cornerstone of the BioAgri market, contributing significantly to the sector’s overall value, added the report.
BioPharma & BioManufacturing sectors have also witnessed a boom in development including Biocon Biologics' global expansion of high-quality biosimilars, AstraZeneca India's entry into rare disease therapy, and strategic investments and partnerships by companies like Serum Institute of Life Sciences and Laurus Labs.
The state also has a bulk of leading Contract Research Organisation (CRO) and Contract Development and Manufacturing Organisation (CRDO) companies, with large enterprises generating $50-100 million every quarter and medium-sized organisations contributing $15-25 million every quarter. “The total BioEconomy from the BioIndustrial segment for 2023 is estimated at $5.1 billion,” stated the report.
Buoyed with the positive output, Karnataka has urged investments alongside a focus on skill development; coupled with the upcoming 4th iteration of the Biotechnology Policy.