Karnataka BioEconomy crosses $39.2 billion in 2025, up from $31 billion in 2023: Report

Karnataka Innovation and Technology Society (KITS), under Department of Electronics, IT, Biotechnology and Science & Technology, on February 23 unveiled Karnataka BioEconomy Report 2025 in collaboration with Association of Biotechnology Led Enterprises (ABLE).

BioEconomy at $39.2 billion

Karnataka’s BioEconomy has reached $39.2 billion in 2025, up from $31 billion in 2023, marking a cumulative growth of 26.5 percent. The sector contributes around 21 percent to India’s BioEconomy and over 10 percent to the state’s Gross State Domestic Product (GSDP), underlining biotechnology’s role as a major economic growth engine.

BioEconomy is now adding nearly $10 billion every quarter to the state’s GDP. BioPharma remains the largest segment, accounting for over 40 percent share at about $16.44 billion, driven by biologics, biosimilars, vaccines and diagnostics.

BioIndustrial biotechnology has emerged as the fastest-growing segment at around $11.46 billion (around 29 percent share), led by fermentation-based industries, biofuels, enzymes and sustainable materials, signalling Karnataka’s transition toward a production-oriented biomanufacturing economy.

BioServices contributes about 25.8 percent, strengthening Karnataka’s position in global research services, digital health and innovation-led outsourcing, while BioAgri continues to support sustainable agriculture and agri-input innovation.

Growth beyond Bengaluru

While Bengaluru Urban accounts for around 54 percent of the state’s BioEconomy, Mysuru contributes 8.7 percent, and Belagavi and Dakshina Kannada together account for over 9 percent.

The state added 218 new biotech startups in 2025, taking the total to 1,451. Over 75 percent of these focus on life sciences and health-tech. Though Bengaluru accounts for 54 percent of startups, emerging regional clusters are gaining traction.

Investments and next phase

Between January 2024 and October 2025, Karnataka attracted $1.14 billion across around 40 deals spanning BioPharma, MedTech, precision fermentation, digital health and AgriBio. The rising share of growth-stage funding reflects investor confidence in the State’s scale-up capabilities.

The report was released by IT, Biotechnology and Rural Development Minister Priyank Kharge in the presence of senior officials including Manjula N and Rahul Sharanappa Sankanur.

Kharge said biotechnology is no longer confined to laboratories but has become central to economic growth, industrial innovation and societal impact. “The government is supporting an Innovation Park at C-CAMP, advancing a Centre of Excellence for Health and MedTech, and strengthening platforms such as Elevate NXT to back deep-tech enterprises in biotechnology, genomics, AI-driven drug discovery and climate biotech” he said.