India's Biotechnology Industry

India’s Biotech Industry: Segment Review

The Indian Biotech industry can be divided into different segments. Following is a review of
largest and the fastest growing segments of the Biotech industry in India.

Medical Biotech Segment

• The Indian pharmaceutical market is growing very rapidly. According to a study by Mckinsey,
Indian Pharma industry is expected to grow to an innovation-led US $25 billion industry by
2010 with a market capitalization of almost US $150 billion from the current US $5 billion
generic based drug industry. The vaccine market is expected to grow by roughly 20%.

Agri Biotech Segment

• India being the second largest food producer, offers a huge market for biotechnology
products, especially agribiotech products.
• India has an excellent scientific infrastructure in agriculture, rich bio-diversity and skilled and
low cost human-power.
• In a report by Ernst & Young it is expected that the Nutraceuticals market is roughly US $532-
638 million presently and growing.
• With its 8000 kilometer of coastline including Andaman & Nicobar and Lakshwadeep islands,
India has a rich aqua culture and its Marine resource development holds great potential.

Services Segment

• With increasing number of pharmaceutical companies finding it difficult to conduct entire
drug discovery process-in-house they are looking for ways to minimize costs. India has
become a very attractive base as the cost of infrastructure is relatively lower compared to
other nations.
• Foreign companies also benefit from cheaper qualified workforce available in India.
• India produces enough qualified graduates each year thus companies looking to expand their
operations can easily do so without facing a shortage in labor.