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The Department of Biotechnology (DBT) was set up under the Ministry of Science and Technology in 1986. This gave a new impetus to the development of biotechnology in India. The DBT has set up many Centres of Excellence in the country. These centers are responsible for generating skilled manpower as well as supporting R&D efforts of private industries. This has promoted interactions between the academia and the industry which has resulted in several industry houses from the "old industry" and entrepreneur initiatives to take root and grow biotechnology in India.

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The Indian Government has evolved biosafety guidelines and has helped to lay down patent rules. It has also participated in technology transfers and international collaborations.

The growth of biotechnology in India has lead to an increase in budgetary allocations, which have gone up by a tremendous amount from 404 million in 1987-88 to 1138 million in 1997-98 and to 2356 million in 2002-03. The center is also planning to introduce additional venture capital funds in line with its Technology Development Fund (TDF) to promote small and medium biotech enterprises.

The Indian government has laid down a decent regulatory framework to approve GM crops and r-DNA products for human health. A proactive government policy allows stem cell research in the country while having in place sound ethical guidelines. The product patent regime will come into force by the year 2005. The second amendment of the Indian Patents Bill was recently cleared by the Parliament, which include a 20-year patent term, emergency provisions and commencement of R&D immediately after the filing of patents. The bill is compatible with the provisions of WTO and TRIPS.

Several states have taken their own initiatives in terms of defining their own biotech policies to give an impetus to the industry in this sector and to biotechnology in India as a whole. States like Andhra Pradesh, Karnataka, Maharashtra, Kerala, Tamil Nadu and Himachal Pradesh are developing biotech parks. They are encouraging research activities, establishing links between their research institutions and industry. Several concessions are being offered to the industry in terms of single window clearance, speedy customs clearance, exemption from tax, creation of funds to be used for the incubation of new project.

Consumption of Biotech Products in India

(Figures in brackets indicate contributions in % of the total)

Investment Opportunities in Biotechnology in India

Over the next five years, biotechnology can offer opportunities for fresh investment of Rs. 7 to 8 billion in India. This fresh investment, could result in a turnover of Rs. 9 to 10 billion during the next 5 to 7 years.

Biotechnology growth in India

Biotechnology growth in India is expected in the following segments of the industry:

Biotechnology thrust areas in IndiaPharmaceutical Market

The Indian pharmaceutical market is growing exponentially. In 1997 its value was a US $ 3 bn, and is expected to rise to US $9 bn by the year 2005. A study of the industry by Mckinsey predicts an innovation-led growth of US $ 25 bn by 2010. Vaccine market in 2001 was US $ 100 mn growing at 20%. Diagnostic market was US $ 200 mn in 2001.Biotherapeutics and diagnostics of which recombinant Hep B dominate medical biotech segment vaccine is the major product. Others include GCSF, EPO & Interferon Alpha 2b. The year 2003 is expected to see the launch of Human Insulin, Streptokinase, other vaccines and diagnostics.

Multinationals like Monsanto, Pfizer, Unilever, Dupont, Bayer, Eli-Lilly, Ranbaxy, Hoechst, Chiron-Boerhringer have set up their businesses in India.

Agribiotech

India is the second largest food producer after China, and thus offers a huge market for biotechnology products. Transgenics of rice,brassica, moonbean, pigeonpea, cotton, tomato and some vegetables like cabbage, cauliflower etc. are already into field trials.Some of these would be ready for large scale production by 2005. Protein-enriched wheat with a higher lysine content will be introduced in the farmer's field by 2003-2005. The nutraceuticals market is valued at Rs. 25000-30,000 mn (US $ 532-638 mn) presently in a study by Ernst and young. Genetically engineered seed market was worth an estimated $250 million from a total seed market worth US $ 500 million in 2001. Marine resource development and aqua culture also hold a great potential as India has more than 8000 kilometers of coastline.

Services

Due to the rising costs of R & D abroad, companies from the US and Europe are looking for contract research in India. India also offers a suitable population for clinical trials because of its diverse gene pools covering a large number of diseases. The IT skill of Indian manpower also offer services in bioinformatics and data mining.

Centres of Excellence

Due to the concerted efforts of the Ministry for Science and Technology, a number of centers of excellence in the field have been created. These places have world-class infrastructure and brains. These centers are open for collaboration and also serve as amajor market for purchase of laboratory supplies and equipment. Some of these are: Plant Genomics Center, New Delhi, Center for Human Genetics, Bangalore, National Institute of Biologicals, New Delhi, Center for Cellular and Molecular Biology (CCMB), Hyderabad, National Facility for Macromolecular Crystallography, BARC, Mumbai, National Facility for High Field NMR, TIFR, Mumbai Central Drug Research Institute, Lucknow, National Brain Research Center, New Delhi.

Link: http://www.biotechdesk.com/market-thrust-areas.php