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Annual Report 2009-10
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:: PRESS RELEASES |
Indian Biotechnology Industry Poised for Further Growth: EXIM Bank Research Study
Hon'ble Shri Chhagan Bhujbal, Deputy Chief Minister of Maharashtra releasing Exim Bank publication "Biotechnology Industry in India: Opportunities for Growth" at the inaugural function of the Global Economic Summit 2010 held in Mumbai on January 20, 2010. Also present are Hon'ble Union Minister for Food Processing Industries Shri Subodh Kant Sahai and Smt. Ravneet Kaur, CMD Exim Bank
A research study just released by Export-Import Bank of India (Exim Bank) assesses that the biotechnology industry in India has been witnessing a consistent and robust growth, ever since it took a foothold in the country in the late eighties and early nineties, and is now poised for further growth in the coming years. The study entitled, 'Biotechnology Industry in India: Opportunities for Growth', was released by Hon'ble Shri Chhagan Bhujbal, Deputy Chief Minister of Maharashtra, at the inaugural function of the Global Economic Summit 2010, organised by MVIRDC World Trade Centre, Mumbai, and All India Association of Industries, on January 20, 2010, at Mumbai. Hon'ble Union Minister for Food Processing Industries Shri Subodh Kant Sahai also graced the occasion. The study aims to underscore the increasing potential of the biotech sector in India and identifies certain niche segments which are likely to be the drivers of the industry in the near future.
Exim Bank study draws attention to the fact that the Indian biotech industry by its very nature is export driven with nearly 60% of the business coming from overseas markets. Currently, India ranks 11th in the world and 4th in the Asia-Pacific region in terms of the number of biotech firms. The industry has weathered the ongoing financial meltdown and has grown at an impressive CAGR of 31.5% during the period 2001-02 to 2008-09, reaching a sales level of Rs. 12137 crore ( approx. US$ 2.6 billion), thereby accounting for a share of around 3% in global biotech revenues. This resilience of the industry to the financial crisis is clearly reflected in its exports which recorded a healthy increase of 25% in 2008-09, unlike the country's overall exports which grew by less than half that rate or the growth in its domestic business which was modest at 10% during the year.
The study affirms that the Indian biotech industry holds significant scope for expansion, not only in the international market but also in the domestic market. While segments like BioPharmaceuticals and BioServices are highly export oriented, others like BioAgriculture, BioInformatics and BioIndustrial segments have tremendous domestic opportunities. The study also enunciates certain niche segments such as Biosimilars, Nanotechnology and Stem Cell Research which are poised to take the Indian biotech industry to greater heights.
Exim Bank study recommends that in order for India to move to a higher growth trajectory, efforts need to be undertaken to attract venture capitalists to the biotech industry so as to mitigate funding issues, especially in light of the ongoing crisis. The study also suggests that conscious and systematic endeavours need to be made to further enhance public-private partnerships, strengthen North-South collaborations so as to facilitate technology transfer and absorption, catalyse coherence in clusters and adopt policies that encourage reverse brain drain. Indian biotechnology industry, over the years, has developed a number of biotech products, but has been found to perform tremendously well in the vaccine segment. The study opines that players in this industry as well as research institutions should increasingly focus upon moving higher up the value chain by enhancing strengths in new products and applications. Indian biotech industry should also expand its frontiers in terms of geographies so that it is conspicuous even in more mature developed markets.
Speaking at the occasion, Mrs Ravneet Kaur, Chairperson and Managing Director, Exim Bank, pointed out the huge promise that the biotechnology industry holds and highlighted the niche segments of the industry which needed to be capitalised in order to realise the untapped potential. Exim Bank undertakes regular research studies on sectors, countries and macroeconomic issues relevant to international trade and investment and the aforementioned study is an outcome of this initiative of the Bank.
For further information, please contact
Mr. S. Prahalathan,
General Manager,
Research & Planning Group,
Export-Import Bank of India,
Centre One Building, Floor 21,
World Trade Centre Complex, Cuffe Parade,
Mumbai 400 005.
Telephone: (022) 22172301,
Fax:(022) 22180743.
E-mail:prahalathan@eximbankindia.in
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