Indian Biotech Industry

Biotech Industry

Indian Biotech Industry: Regional spread
The Indian biotechnology industry is well spread across the length and breadth of the country. Several states such as Andhra Pradesh, Himachal Pradesh, Kerala, Tamil Nadu, Uttaranchal, Uttar Pradesh, and Rajasthan among others have adopted biotech policies and established biotech parks to promote the industry.

Bioclusters
There are over 300 companies that are into the biotech business across the country and another 140 companies that supply technology products to these biotech companies. 

Regional distribution of Biotech Revenue 

 The Southern biocluster is housed mostly in and around Bangalore, Hyderabad and Chennai. The heterogenous nature of the Southern cluster, which has companies ranging from the bioagri to bioinformatics to bioindustrial, has made it an attractive destination for companies to set shop here. The Western cluster is centered around Aurangabad, Ahmedabad, Mumbai and Pune, while companies in the North are primarily located in Delhi-Gurgoan-Noida region

Biotech Parks in India
Lucknow - Health Care, Agriculture, Environment, Industrial Applications, Energy Andhra Pradesh - Development and scale-up of bioprocesses and technologies Karnataka - Drugs and Pharma Punjab - Agribusiness and Certification of Export Goods Kerala - Traditional Medicines Himachal Pradesh - Medicinal and Aromatic Plants, Horticulture

 

Revenue Share. 

The Biocluster in the western region is the largest in terms of the revenue generated in financial year 2006 with companies like Serum Institute of India, Venkateshwara Hatcheries and Mahyco-Monsanto leading the way. In fact the Western region is the topper for the fourth year in a row with companies from the region grossing $718 million (Rs. 3234.42 crores) which is half of the national biotech share.

 The southern region continues to be second accounting for 36 percent of the industry revenues; they generated $526 million (Rs. 2367 crores) in FY 06. The prominent companies in this region include Biocon and Rasi Seeds, among others. Companies in the North generated a total revenue of $200 million (Rs. 919.46 crores) and contributed to 14 percent of industry revenues. Panacea Biotec, Eli Lilly and Ranbaxy are some of the major players from the North region.

Special Economic Zones in India

These are engines for economic growth supported by quality infrastructure and an attractive fiscal package with minimum possible regulations. They are expected to trigger a large flow of foreign and domestic investment for building infrastructure and increasing productive capacity thereby leading to generation of additional economic activity and creation of employment opportunities. The incentives and facilities offered to the units in SEZs include:-

Duty free import/domestic procurement of goods for development, operation and maintenance of SEZ units 00% Income Tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for first 5 years, 50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5 years Exemption from minimum alternate tax under section 115JB of the Income Tax Act External commercial borrowing by SEZ units up to US $ 500 million in a year without any maturity restriction through recognized banking channels Exemption from Central Sales Tax and Service Tax Single window clearance for Central and State level approvals Biotech Companies in Biotech Parks allowed 5 year time-frame to meet export obligation norms under the SEZ scheme

India's Intellectual Property Regime Promotes Innovation

Fully TRIPS compliant patent regime provides for product patent protection in all fields of technology Patenting of new microbes and parts thereof (e.g. novel genes, constructs, vectors etc.) is possible Procedures simplified to make the system efficient and user-friendly IP Offices in Chennai, Delhi, Kolkata and Mumbai fully modernized and operational; website of IP offices (www.ipindia.nic.in) launched; online search facilities available through connectivity to international databases IP administration continuously upgraded vis-à-vis WIPO, EPO, JPO, Korean Patent Office, etc. Intellectual Property Appellate Board set up in Chennai to ensure speedy disposal of appeals against decisions of Registrar of Trade Marks New regime encourages investment in R&D from local sources as well as from abroad through joint ventures

Government to set up Biotech Industry R&D Assistance Council

Global experience indicates that innovation in biotechnology occurs in small and medium size enterprises (SMEs) with large industries then taking up manufacturing and marketing activities. However, for India to fulfill its potential and emerge as a strong global player in biotech sector, government's role as champion and catalyst is critical in ushering in an ecosystem that encourages innovation, competitiveness, investment and enterprise development. Public-private partnership is critical to the success of innovation. A seamless interface between academia and industry is essential.

       To stimulate and enhance innovation capabilities of the industry sector and to promote and sustain academia-industry interaction, the Government of India has envisaged the creation of Biotechnology Industry Research & Development Assistance Council (BIRAC). The council is expected to assist industry through a range of services. These are intended to 

access key resources and new technologies

offer testing and validation facilities

offer timely financial assistance

facilitate and promote industrial research through technology transfer and intellectual property management, technology acquisition and technology forecasting

In addition, a special cell would be designed to addresses the needs of training and capacity building of SMEs.