Biotech industry accounts for below one per cent of global revenues

EPP News Bureau - Mumbai

The Indian biotechnology industry, with total revenues of $720 million in 2003-04, accounts for less than one per cent of global biotechnology revenues, says a study conducted by Export-Import (Exim) Bank. The study found that the total revenues of the Indian biotechnology industry shot up to Rs 3,265 crore in the financial year 2003-04, thereby registering a 39 per cent year-on-year growth compared to 2002-03.

Segment-wise data for fiscal 2003-04 shows that biopharmaceutical products formed the largest chunk, contributing 76 per cent to the total revenues. This was followed by bio-industrial products and bio services at eight per cent share each in 2003-04.

The total domestic sales of the biotech industry registered a year-on-year growth of 34 per cent to Rs 1,448 crore in fiscal 2003-04. Exports grew by 44 per cent (y-o-y) to Rs 1,817 crore, accounting for 56 per cent of the total revenues of the sector.

Biopharmaceutical products formed the largest chunk of exports at 76 per cent, followed by bio servcies at 14 per cent and bio industrial products at five per cent. USA topped the global biotechnology industry boasting around 1,500 biotech companies, followed by Canada, having 470 biotech firms and Germany, with 340 during 2003.

Comparitively, India, with its estimated 160 active firms ranked eighth in the world. ‘‘However, in the Asia Pacific region, India is positioned at second place to Australia,’’ said the study. Exim Bank chairman and managing director TC Venkat Subramanian said, ‘‘Exim Bank has identified the biotechnology as one of the thrust sectors a decade ago. The bank has part-funded UTI Venture Fund, which looks at biotech as a focus sector, and has assisted many start-up companies.’’

The study, titled ‘Biotechnology: Emerging opportunities for India?’, observed that while India had demonstrated its prowess in generics, clinical research and trials, bio-processing, bio-informatics and stem cell reserach, issues such as regulation of the biotechnology industry, provision of sufficient venture capital funding, and improvement in the skill set of trained manpower needed to be addressed to ride advantageously the biotechnology wave.