Karnataka's bioeconomy, which grew 10.7 percent to $31 billion in 2023, will hit the $100- billion mark by 2030, a state government report released on July 31 has said.
Also, read: Funding gap a major challenge for India’s biotechnology sector
India’s bio-economy is targeted to reach $ 300 billion from the current $151 billion at a CAGR of 14 percent since 2020. Karnataka currently accounts for one-fifth of the country’s bioeconomy, the 'Bioeconomy Report 2024, released by the state’s information technology and biotechnology minister Priyank Kharge, said.
“At the current rate, Karnataka would grow to $70 billion by 2030. However, Karnataka has the potential to register a 19 percent CAGR and reach $100 billion by 2030, increasing its share to one-third of India’s bioeconomy,” it said.
Currently, biopharma leads with $12.61 billion (41 percent) driven by innovations in therapeutics, vaccines, and diagnostics. Bioindustrial follows with $12.10 billion (39 percent) in biofuels and industrial enzymes. Bioservices and bioIT contribute $5.09 billion (16 percent) in research and IT solutions, while bioagri, at $1.22 billion (4 percent), focuses on sustainable agriculture and biopesticides, the report said.
The state will focus on increasing biopharma contributions to $30 billion, expanding bioagri to $15 billion, and quadrupling bio-industrial contributions to $30 billion, the report said.
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Karnataka attracted over 30 percent of national biotech investments in 2023, contributing 21 percent to India's bioeconomy. Its bioeconomy makes up nearly 10-12 percent of the state's $310 billion economy.
With a $31 billion bioeconomy, Karnataka is second only to Maharashtra in its contribution to the national bioeconomy. “This influx of capital has fuelled research, development, and commercialization efforts, solidifying Karnataka’s status as a biotech powerhouse", the report said.
IT-BT secretary Ekroop Caur said the bioeconomy report shaped Karnataka's new biotechnology policy.
"The report focuses on biomanufacturing, and emerging sectors like bioagriculture and medical devices. Karnataka's startup base crossed the 1,000 mark, with 202 new biotech startups in 2023, averaging 17 per month," she said.
In the Beyond Bengaluru cluster, Mysuru contributes 9.04 percent to the bioeconomy, with Belagavi, Dakshina Kannada, and Bengaluru Rural each contributing over 4 percent.
"Mysuru ($2.81 billion) and Dakshina Kannada (bioindustrial and bioIT in Mangaluru) highlight diverse economic activities. Raichur and Yadgir are notable in bioagriculture, showcasing Karnataka's widespread bioeconomic potential,” the report said.
Kharge said Karnataka was encouraging investment, enhancing skills, and leveraging biomanufacturing opportunities, including biofuels and bioCNG from waste. The upcoming fourth biotechnology policy would further boost the bioeconomy.
Also, read: Bengaluru Tech Summit: Karnataka to unveil revised AVGC-XR and biotech policies, says CM Siddaramaiah
There are various definitions of bioeconomy but is largely defined as the economy that uses renewable biological resources such as crops, forests, fish, animals and micro-organisms for building materials, chemicals, and energy.
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