| James C Greenwood |
For most people, biotechnology is a mysterious word that is known in the abstract, but is ambiguous in regard to real world applications. Yet, many recent advances enjoyed by the average person have been made possible by biotech. For example, all vaccines and many modern medicines are products of biotech. 95 per cent of all the cotton grown in this country is the product of biotech cottonseeds. Our food, fuels, and even our waste water treatment have benefitted from the work of biotech scientists in India and around the world.
The latest industry reports too project India as a potential biotech hub growing at an impressive rate of 18.7 per cent per annum with over Rs 20,000 crore in revenues in the year 2011-12. The government has invested significant funds into helping this nascent sector grow even faster. These investments have the potential to turn India into a truly innovative country and a global leader in biotech.
Biotech holds great hope for enhancing the income of rural farmers by increasing crop yields, preserving and improving soils, providing drought resistance, improving control of pests, weeds and harmful diseases, and producing more healthful food with enhanced vitamin and nutrient levels. By using biotech tools to enhance crop yields, India will see immediate benefit for the largest and the most-vulnerable section of Indian society.
For example, Nuziveedu Seeds, India’s top seed company, based in Hyderabad, uses modern biotechnology techniques such as DNA fingerprinting to optimise hybrid cotton, rice and maize seeds.
The demand for better food, especially for milk and meat products are growing even while the food inflation is escalating; productivity gains in major crops will result in much needed rural transformation and stimulus to Indian economy which is largely based on domestic consumption.
Agricultural biotech has helped produce dramatic increases in yields of cotton, soybeans and maize. The numbers of cotton farmers who have adopted Bt cotton in India increased from 50,000 in 2002-2003 to 7,000,000 in 2011-2012, a 140X increase representing about 88 per cent of the cotton growing farmers and 95 per cent of all cotton grown in India. Unfortunately this amazing growth story has cooled considerably in India since the government instituted a moratorium earlier this year on all new GM crops, bringing new investment and research by Indian research institutes and companies to a screeching halt.
Governments around the world, faced with the prospect of out-of-control healthcare costs are looking for ways to save expenses and vaccines are an efficient and cost-effective way of doing so. Globally, sales of human vaccines are forecast to grow by 10–13 per cent per year over the next five years and as the world’s largest manufacturer of vaccines, India is in a good position to benefit from this growing trend. The growth of India vaccine manufacturers arises from their ability to develop and produce high-quality vaccines with low manufacturing costs. Biotech innovation is improving the odds for millions of patients around the world with serious, life-threatening conditions. Today, six of the top 10 home-grown biotech companies specialise in biopharma, including several that focus on vaccines such as Serum Institute of India and Bharat Biotech.
Finally, India is in need of greater, cleaner sources of energy to keep the economy growing. A move to bio-based, renewable, low-carbon or carbon-neutral fuels is of central importance to the future health of the planet. Industrial and environmental biotech helps make manufacturing processes cleaner and more efficient; creates new materials, food ingredients and other products; unlocks cleaner sources of energy; and reduces industrial waste. Biotech helps to unlock the potential of biofuels like bio-ethanol and global companies like Praj Industries based in Pune are bringing these advances to the market.
India is not the only country that recognises the growth potential of biotech. Others, in particular other emerging markets like Brazil, China and Russia, have devoted additional resources to assisting its biotech companies to succeed in this difficult space. Therefore, India’s success in this space is not guaranteed. Despite the advantages of a large potential market and a seemingly inexhaustible supply of scientists and engineers, not all the ingredients are in place for long-term, sustainable growth in this sector.
What is missing includes access to capital, entrepreneurial skills, and government policies to encourage innovation and investment in the biotech space. In these areas, India falls short. The Government can help fill these gaps by establishing science-based regulations, strong and predictable intellectual property protections, and an overall stable legal framework that can help provide clarity and predictability for businesses. In short, by making India a business friendly environment. This in turn will attract investors, especially foreign investors who understand the risks and rewards of biotech and are looking for a safe, secure environment in which to make their investments. Foreign investors bring an additional benefit that is not well acknowledged: because their money is on the line, they ensure their companies and their CEOs get the training and support they need in order to be successful entrepreneurs.
During this period of tremendous growth in both the Indian economy and its healthcare sector, it is a critical time to capitalise on the biotech opportunities available within India. The Biotechnology Industry Organization (BIO) organises the annual BIO India International Conference and the BIO International Convention is an ideal opportunity to connect with potential businesses with partners from around the world.
We are committed to helping to support and grow the biotech sector in India, working with partners such as the Association of Biotechnology-Led Enterprises (ABLE) and many of our member companies that are actively engaged in research and development in India. Working alongside ABLE, we aim to help the industry flourish within India’s borders and help Indians benefit from the promise of biotech.