India's inherent strengths in biotechnology if supported by enabling policy environment, good infrastructure and increasing partnerships and alliances may result in the strong growth of the sector, suggests a recent ICRA sectoral analysis. It has highlighted the complications and overlap in regulations that lead to delays in product launch as major roadblocks and wanted an end to all such hurdles for the healthy growth of the industry.
Terming the National Biotech Strategy meant to address these issues as a positive step, ICRA felt that the setting up biotech parks and incubators in more states may support alliances between companies and academic institutions thereby supporting the growth of the industry. According to ICRA, various independent bodies have already recognised industry's strengths and expertise in pharmaceutical manufacturing and fermentation technologies, skills in handling microbes and animal cells, capabilities in addressing the needs of downstream industries and skills in extraction and isolation of plant and animals products. The biotechnology industry in India has been witnessing a rapid growth in investment. The sector has witnessed a CAGR of 50.31% in investment over the period 2000-01 to 2003-04. The industry is expanding rapidly and the funding needs of the industry are met by various sources such as the government, venture capital funds & private investors, capital markets, banks and financial institutions, the report stated.
Quoting DBT estimates, it stated that the Indian biotechnology sector is set to achieve $ 5 billion in revenues by 2010 (i.e. CAGR of 35.91%) with the growth being driven by biopharmaceuticals, bioservices and bioinformatics segments.