India aims to boost its biotechnology sector through increased investment in research and manufacturing. However, challenges such as weak IP framework and lack of expertise may hinder growth. Improvement in R&D and IP infrastructure is crucial for India to become a global biotech leader.
Key View
- India’s government will increase investment in domestic pharmaceutical research and manufacturing to become a global biotechnology leader.
- However, India’s aim to advance its biotechnology sector will be hindered by a weak IP framework and lack of domestic expertise.
- Due to deficiencies in IP protection and specialised expertise, we maintain our forecast for India’s pharmaceutical growth.
India’s government will increase investment in domestic pharmaceutical research and manufacturing to become a global biotechnology leader. On November 10 2024, India’s Department of Biotechnology (DBT). under the Ministry of Science and Technology, established the Biotechnology Research and Innovation Council (BRIC) with the aim to drive advancements in the biotech sector. In addition, on November 26 2024, Merck Life Science in India signed a memorandum of understanding (MoU) with the Department for Promotion of Industry and Internal Trade (DPIIT). This collaboration under DPIIT’s Startup India initiative aims to empower India’s emerging biotech startups. The industry collaboration strongly aligns with the ambitions outlined in the National Biotech Strategy 2021-2025. The strategy provides a framework for domestic and foreign entities to collaborate and foster technology transfer to ultimately support the growth of India’s biotechnology sector. Through this strategy, the market aims to position itself as a leading global hub for biologics manufacturing by 2030. The speed at which the strategy is being actioned reflects India’s commitment to advancing its biotechnology sector, as well as the strong interest from foreign entities to engage in this transformative journey.
However, India’s aim to advance its biotechnology sector will be hindered by a weak IP framework and lack of domestic expertise. India’s domestic expertise has traditionally been confined to generic small molecules, leading to a significant talent gap that hinders the biotech sector’s growth. Developing and producing advanced biologics necessitates a highly skilled workforce and this shortage in specialised talent and research capacity could prevent innovative drugmakers from pursuing advanced biologics development and production in India. As a result, innovators may prefer to restrict their partnership agreements to manufacturing simpler biologics. Furthermore, the limitations in India’s IP framework present another major challenge. Although India has shown a commitment to enhancing its IP system in recent years, it still falls short of international standards. Consequently, the Pharmaceutical Research and Manufacturers of America (PhRMA) trade association has recommended placing India on the Priority Watch List of the 2024 Special 301 Report, reflecting ongoing concerns from leading multinational drugmakers. These current IP shortcomings may discourage innovative drugmakers from engaging in high-value biologics projects in India as they are likely to prioritise markets with stronger IP protections to safeguard their investments and innovations.
India’s ambition to become a global biotechnology leader faces a significant hurdle due to underdeveloped research and development (R&D) and intellectual property (IP) infrastructure. The biotechnology sector, which holds potential for advancements in healthcare, agriculture, and environmental sustainability, requires robust R&D facilities to foster innovation. However, India’s current infrastructure is not equipped to support large-scale, cutting-edge research, limiting the development of breakthrough technologies and products. The scarcity of funding and limited access to advanced laboratories and equipment further hinders progress.
Furthermore, India’s IP infrastructure poses challenges for biotech innovation. Inefficient patent processes and weaker IP enforcement mechanisms can deter investment and collaboration, both domestically and internationally. Innovators may feel discouraged due to inadequate protection of their intellectual property, which is critical in the fiercely competitive global biotech market. Strengthening IP laws and ensuring efficient enforcement can create a more secure environment for innovators to bring their ideas to fruition.
Addressing these infrastructural challenges is essential for India to realize its biotech leadership aspirations. Investment in state-of-the-art R&D facilities and revising IP frameworks are crucial steps toward fostering innovation and attracting international partnerships. By prioritizing the development of a robust scientific and legal framework, India can accelerate its journey towards becoming a biotech powerhouse, contributing significantly to global advancements in technology and human welfare.
Source : Underdeveloped R&D And IP Infrastructure Will Impede India’s Aim To Emerge As A Biotech Leader