New Delhi, March 31 (IANS) India’s bioeconomy is approaching the $200 billion mark, which is a significant milestone in its evolution with a strong policy push and growing innovation pipeline signalling the next phase of growth, according to a report released on Tuesday.

The report by Endiya Partners said that the nation’s bioeconomy has expanded sharply from around $10 billion in 2014 to over $195 billion in 2026, now contributing nearly 5 per cent to the GDP.

India, long recognised as the ‘Pharmacy of the World’ for supplying nearly 20 per cent of global generics and over 60 per cent of vaccines, is now transitioning towards an innovation-led biopharma ecosystem focused on novel therapeutics and deep-tech platforms.

The report highlighted that India stands at an inflection point, driven by favourable policy measures, regulatory reforms, and increasing global validation of its clinical-stage assets.

It also highlighted key government initiatives — including the proposed Rs 10,000 crore Biopharma Shakti scheme and the Rs 1,00,000 crore Research, Development and Innovation (RDI) Fund — that are expected to accelerate the development of a robust innovation ecosystem.

Recent regulatory reforms, such as the introduction of a 45-day approval timeline and prior intimation pathways, are also likely to reduce administrative bottlenecks and compress drug development cycles by up to four months, it added.

At the same time, structural shifts in the global biopharma industry, including rising R&D costs, estimated at $2.2 billion per asset, and a looming $300 billion patent cliff, are creating opportunities for cost-efficient and high-velocity research ecosystems like India.

The report also noted that Indian biotech startups benefit from a ‘Recruitment Alpha’, enabling significantly faster patient enrolment and allowing drug candidates to advance to Phase II trials at substantially lower costs compared to global peers.

This advantage enables Indian firms to take multiple parallel bets in drug development, improving overall success probabilities, it added.

However, the report cautioned that challenges remain, including gaps in pilot-scale GMP infrastructure, limited late-stage funding, talent shortages, and the need for stronger translational research capabilities.

Despite these constraints, India’s biopharma ecosystem — comprising over 2,500 startups, around 100 incubators, and more than 600 research institutes — is well-positioned to support the next phase of growth.

“With sustained policy support and deeper ecosystem collaboration, India has the potential to emerge as a global hub for cost-efficient, high-quality biopharma innovation,” the report said.

–IANS

ag/na