How is India Shaping the Future of Global Biotech

India’s bioeconomy is projected to grow from USD 130 billion in 2024 to USD 300 billion by 2030. Dr. Jitendra Singh, the Union Minister for Science and Technology, Govt of India, highlighted that the nation’s bioeconomy has grown 13-fold over the last decade.

India ranks among the top 12 global biotech destinations and is the third largest in the Asia Pacific holding around 3% of the global biotechnology market share​. With the nation positioned as a leader in bio innovation and biomanufacturing, biotechnology is now a key sector in India's goal to achieve a USD 5 trillion economy by 2025.

Biotechnology Industry in India -By the Numbers

• 74 + Bio-incubators
• $17 billion- Expected revenue generation from vaccines by 2025
• 800 + Core Biotech Companies
• 300,000 + Employment Generated
• 6000+ Biotech Startups currently, to grow up to 10,000+ by 2025
• 800+ Biotech Products and Technologies supported
• Strong digitization, a skilled workforce, and cost-effective clinical trials are driving 19% growth in Bio-IT & Bio-Services
• 100% Foreign Direct Investment (FDI) is permitted under the automatic route for greenfield pharma and the manufacturing of medical devices, while for brownfield pharma, up to 74% FDI is allowed automatically, with government approval required beyond 74%.

India -The Biotech R&D Hub

India stands out as a global destination for biotech and life sciences innovation, offering an unparalleled mix of demographic, talent, economic, and infrastructure advantages. These factors make India not only ideal for research and development but also for large-scale operations and clinical trials.

1. Demographics: A Large and Diverse Population Base

India’s 1.4 billion+ population is not just a massive consumer base but also a critical enabler for life sciences research. The country's diverse genetic makeup provides pharmaceutical companies with the ability to test drugs across multiple demographic groups, making India a preferred destination for clinical trials.

The aging population (67% aged 15-64) and rising life expectancy create increasing demand for healthcare solutions and targeted therapies.

India’s demographic advantage accelerates late-stage drug testing, particularly for global pharmaceutical companies seeking robust, real-world data.

2. Talent Pool: Skilled Workforce with Global Expertise

India produces the 2nd highest number of STEM graduates globally, second only to China. This strong talent base, combined with an English-speaking workforce, makes India a powerhouse for life sciences innovation and related industries.

Global Capability Centers (GCCs): India has become a preferred destination for multinational companies to establish GCCs, focusing on product innovation, Big Data analytics, and digital transformation. As of 2023, there were nearly 1,600 GCCs in India, and this number is expected to grow to 1,900 by 2025.

Over 40 GCCs in the life sciences sector are operated by companies like AstraZeneca, GSK, Eli Lilly, and Bayer. Beyond core R&D, India’s talent pool also supports back-office operations like finance, IT, and regulatory reporting, ensuring seamless business continuity for global companies. 

3. Established Pharmaceutical Ecosystem

India has a well-established and mature pharmaceutical ecosystem, making it an integral part of the global life sciences value chain:

Generics and APIs: India is the second-largest generics manufacturer globally, meeting 20% of the global demand for generics.

Vaccine Manufacturing: India is the largest vaccine producer in the world, supplying over 1/3rd of all vaccines globally. Genome Valley in Hyderabad houses major vaccine manufacturers like Bharat Biotech and Biological E.

CDMOs and CROs: The Contract Development and Manufacturing Organization (CDMO) and Contract Research Organization (CRO) sectors thrive in India, facilitating outsourced drug development, trials, and manufacturing. As per industry projections, the Indian  CDMO market size currently stands at USD $22.51 billion, and it is projected to reach USD $44.63 billion by 2029, growing at a CAGR of 14.67% during 2024-2029. 

4. Strong Regulatory Framework and Oversight

India’s regulatory infrastructure ensures compliance, safety, and quality, making it a reliable partner for global biotech and pharma companies. India has the highest number of US FDA-approved labs outside the USA, with 350+ FDA-registered plants as of FY24.

The evolution of regulatory processes in India has streamlined clinical trial approvals, enabling faster market entry for new drugs.

5. Cost Efficiencies: A Competitive Edge

India’s cost-effectiveness makes it a strategic choice for R&D and operational setups:

Lower setup and operational costs allow companies to stretch their research budgets, driving innovation while maintaining profitability. Leasable real estate models, particularly in life sciences clusters like Genome Valley reduce development timelines and capital risk, offering ready-to-occupy spaces with regulatory assistance.

India’s combination of demographic diversity, skilled talent, strong infrastructure, and cost efficiencies positions it as a global leader in life sciences and biotech innovation. This environment not only fosters R&D but also supports companies across the value chain, making India the preferred destination for biotech growth.

Ease of Setting Up Operations in India

Flexible Development Models 

Built-to-Suit Developments

Custom-designed facilities for companies focusing on specialized R&D, manufacturing, or testing activities.

Multi-Tenanted Developments

Speculative greenfield projects catering to incremental demand from both Indian and multinational players across pharma, biotech, CROs, CDMOs, and agri-sciences.

Acquisitions and Sale-Leaseback

Companies can unlock capital through sale-leaseback arrangements, ensuring long-term access to specialized infrastructure without ownership risks.

Life sciences R&D companies can choose between owned and leasable models, but the leasable model is increasingly preferred due to its ability to reduce costs, shorten setup timelines, and mitigate operational risks. Combined with the presence of world-class life sciences clusters, India ensures a seamless environment for research, development, and innovation.

Leasable Infrastructure -the Preferred Choice

For life sciences companies, the leasable model offers clear advantages over the traditional owned infrastructure approach:

1. Cost Efficiency: Companies avoid the high capital expenditure of constructing infrastructure, allowing them to allocate resources toward R&D and operations.
2. Faster Setup Timelines: Ready-to-occupy spaces drastically reduce gestation periods, enabling quicker commencement of operations.
3. Regulatory Assistance: Developers provide support with approvals, certifications, and compliance, addressing one of the key challenges in the heavily regulated life sciences industry.
4. Flexibility and Scalability: Multi-tenanted spaces allow companies to scale operations without being locked into significant upfront investments.
5. Risk Mitigation: Leasing reduces exposure to construction delays and other development risks, ensuring smoother business continuity.

Service providers like Neovantage Innovation Parks are addressing this demand with integrated office-lab ecosystems, which combine research spaces, corporate offices, and support infrastructure in a single location. These integrated campuses not only enhance operational efficiency but also foster synergies between R&D and business activities, enabling companies to achieve economies of scale.

India’s Thriving Life Sciences Clusters

India’s life sciences cluster ecosystems are strategically located hubs that bring together policy support, research talent, and corporate players. These clusters are purpose-built to drive innovation and collaboration across the life sciences value chain. Examples include:

1.Genome Valley, Hyderabad

• India’s largest and most advanced life sciences R&D cluster, housing over 200 companies, including global players like Bharat Biotech, Biological E, Novartis,  Syngene, etc.
• Known as the “Vaccine Capital of the World,” Genome Valley provides state-of-the-art infrastructure, robust policy support, and a single-window clearance system, making it ideal for global and domestic firms.

2.Bengaluru

• A key hub for pharmaceuticals, medtech, and Global Capability Centers (GCCs), Bengaluru accounts for 40% of GCC leasing in India.
  
  
• Micro-markets like Whitefield, North Bengaluru, and Bommasandra offer integrated office-lab setups with proximity to residential and social infrastructure, catering to companies like AstraZeneca, Eli Lilly, Novo Nordisk,  IQVIA etc.

3.Navi Mumbai and MIDC, Mumbai

• Navi Mumbai’s emerging micro-markets are attracting companies in CROs and specialty chemicals, with notable players like Piramal Pharma, Glenmark, etc.
  
  
• Infrastructure developments such as the Navi Mumbai International Airport and Mumbai Trans Harbour Link are transforming this region into a preferred location for life sciences companies.

4. Chennai and Pune

• Chennai benefits from academic institutions like IIT Madras, which supports biotech research and incubates innovative startups. Companies like Pfizer and Sanofi have already established a presence here.
  
  
• Pune, traditionally a hub for IT and back-office operations, is rapidly emerging as a key destination for life sciences and agri-sciences sectors. Industry giants like Lupin, Roche, GSK have a presence there. 

Adjacent Opportunities in the Life Sciences Value Chain

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The growth of India’s life sciences sector is driving the development of adjacent industries that form part of its larger value chain. These interconnected sectors are witnessing accelerated growth, fueled by increasing demand for innovation, infrastructure, and specialized real estate. Key opportunities include:

1. Medical Devices and Technology
India’s medical devices and medtech sector is poised for rapid growth, with a market size projected to increase from USD 11 billion in 2022 to over USD 50 billion by 2030.

• Data-Driven Innovation: The sector is heavily driven by data analytics, research, and collaboration with life sciences, especially in drug development and diagnostics.
• Government Support: Policies like the Production-Linked Incentive (PLI) Scheme and 100% FDI for medical devices have spurred investments and growth in this segment.
• Startup Ecosystem: India’s vibrant medtech and healthtech startup landscape is attracting significant funding and innovation, further strengthening this sector.
• Infrastructure Needs: Integrated spaces combining R&D labs, offices, and small-scale manufacturing units are becoming essential to support the industry’s growth.

2. Specialty Chemicals
The specialty chemicals industry, valued at USD 82 billion, is expected to grow at a 12% CAGR through 2025. This sector plays a critical role in supporting the life sciences value chain, particularly in drug formulation and biomanufacturing.

• Integrated Value Chain: India’s established pharma ecosystem has led to increased production of raw materials used in drug development.
• Key Growth Segments: Homecare ingredients, nutraceuticals, fragrances, and flavors are gaining prominence as they are less polluting compared to other chemical sub-segments like dyes and polymers.
• Export Contribution: Specialty chemicals account for 22% of India’s overall chemicals and petrochemicals market, showcasing its global significance.
• Infrastructure Needs: Integrated office-lab setups are becoming the preferred choice for specialty chemical players focusing on R&D and small-scale manufacturing.

3.Agri-Sciences

The agri-sciences sector, also valued at USD 82 billion, is set to grow at a 12% CAGR, driven by rising demand for food security, crop innovation, and sustainable agricultural practices.

• R&D Focus: Innovations in tissue culture, seed technology, pest control, and fertilizers are enabling significant advancements in agriculture.
• Agri-Tech Startups: The agri-tech ecosystem in India presents a USD 24 billion opportunity, with significant room for growth (only 1.5% market penetration currently).
• Cold Chain Development: Infrastructure for cold storage and logistics is becoming critical to ensure food sustainability and efficient supply chains.
• Infrastructure Needs: Agri-sciences companies increasingly require integrated research labs and collaborative spaces to drive innovation in crop technology and sustainable agriculture.

Genome Valley & Neovantage Innovation Parks

Genome Valley, situated in Hyderabad, Telangana, is India's first organized cluster for life sciences R&D and clean manufacturing. Established in 1999, the cluster features world-class infrastructure encompassing Industrial/Knowledge Parks, Special Economic Zones(SEZs), diverse multi-tenanted dry and wet laboratories, and incubation facilities. 

Neovantage Innovation Parks serves as the gateway to the thriving ecosystem at Genome Valley. The Park offers unparalleled support, from sustainably developing bespoke inspiring spaces for life science innovations, managing end-to-end greenfield and brownfield developments, to delivering a full range of services and amenities thus ensuring a seamless operational experience for its tenants.

To learn about the role of Genome Valley in India’s Biotech Revolution, click here.  

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