INDIA HAS THE POTENTIAL TO RIDE THE BIOTECHNOLOGY WAVE: EXIM STUDY

Exim Bank's latest study titled 'Biotechnology: Emerging Opportunities for India' observed that India is already demonstrating its prowess in generics, clinical research and trials, bioprocessing, bio-informatics and stem cell research. However, issues such as regulation of the biotechnology industry, provision of sufficient venture capital funding, and improvement in the skill set of trained manpower need to be addressed to ride advantageously the biotechnology wave.

The study was released at the hands of Shri N. Dharam Singh, Hon'ble Chief Minister of Karnataka, at Bangalore Bio 2005 Conference, on April 22, 2005, at Bangalore. Hon'ble Union Minister of Health and Family Welfare, Dr. Anbumani Ramadoss graced the occasion. Speaking on this occasion, Mr. T C Venkat Subramanian, Chairman and Managing Director, Export-Import Bank of India said that India possesses many advantages in the form of rich bio-diversity, highly productive and qualified manpower, state of the art research labs, presence of strong pharmaceutical and bio supplier sector, to support the growth of the biotechnology sector. This could be further strengthened through cooperation amongst developing countries, in several areas, such as transfer of technology, pooling of resources, sharing of country experiences, and spreading the costs and risks of innovation, Mr Venkat Subramanian said.

The study noted that the global revenues of biotechnology industry (both public and private companies) were estimated to be more than US $ 70 billion in 2000, with biopharmaceuticals forming the largest share (60%), followed by diagnostics (14%) and industrial enzymes (4%). However, data on public biotechnology companies revealed that the revenues were estimated to be US $ 46.6 billion in 2003, registering a 17% growth over 2002. Indian biotechnology industry with total revenue of US $ 0.72 billion in 2003-04 is estimated to have less than 1 percent of global biotechnology revenues.

The study observed that USA has around 1500 biotechnology companies, and topped the global biotechnology industry, followed by Canada (470) and Germany (340) during 2003. India, with its estimated 160 active firms, ranked eighth in the world. In the Asia Pacific region, India is positioned at second place next to Australia

The study remarked that in the changing global arena, the conventional pharmaceutical business models have given way for new business models to aid the growth in biotechnology sector. In addition, strategic alliances and mergers and acquisitions have become a norm in the global biotechnology industry. Against this backdrop, in India, the biotechnology firms used service model as a most preferred entry strategy during start up stage.

The study analysed the competitiveness of the Indian biotechnology industry and identified the areas of competence, especially, the capacity in sterile fermentation process, skills in handling microbes and animal cells, skills in extraction of plant and animal products, competence in plant and animal breeding and creation of infrastructure in bioreactors and processing equipment.

The study reviewed the success of Cuba in the biotechnology sector and delineated that, at present, Cuba exports biotech products to more than 50 countries including India and has filed more than 500 patents. As a result, Cuba now boasts of a vibrant biotechnology sector, with export projections expected to soar as high as US $ 800 million in the medium term. The study has also highlighted the significance of increasing cooperation between Cuba and India.

The potential of Indian biotechnology sector could be fully reaped through concerted and sustained efforts. Exim Bank has identified the Biotechnology sector as one of the thrust sectors a decade ago. Exim Bank has also part funded UTI Venture Fund, which also looks at Biotech sector as a focus sector, and has assisted many start-up companies.