India’s biotechnology industry is continuing to grow amid a weak economic backdrop, as companies seek to exploit the country’s expertise and competitive costs.
Experts say a slew of challenges in the sector – including regulatory hurdles – need to be overcome if the industry is to realise its full potential.
“The sector still continues to remain insulated from the economic recession, at least for now,” said Shakthi Nagappan, the chief executive of BioAsia, an annual conference of the biotechnology sector. Mr Nagappan said he expected “phenomenal growth” over the coming years.
Last year, India’s biotechnology industry was worth US$4.3 billion, and is forecast to reach $11.6bn by 2017, according to the consultancy Ernst & Young.
The industry in India is heavily dominated by the pharmaceutical sector, which accounts for more than 60 per cent of revenues. Services, agricultural, industrial and informatics are other major segments in the country’s biotechnology sector.
The government-backed India Brand Equity Foundation says the country’s large population is a huge market for biotechnology products and services.
Rising investments from domestic and foreign players, full foreign direct investment for manufacturers of drugs and pharmaceuticals, and a low-cost and skilled labour force are some of the growth drivers, according to the foundation
Mr Nagappan says India is well-regarded in certain areas of biotechnology such as the development of vaccines, and it has significant potential in other segments.
According to Mr Nagappan, India has the third-largest biotechnology revenues in Asia behind China and South Korea. But the country overtakes these nations in terms of investments in the sector. He cites India’s labour costs and its skilled English-speaking workforce for India’s allure as a biotechnology hub.
And although India has massive scope to develop its agricultural biotechnology sector, there are challenges constraining that, including concerns about the effects of genetically modified crops.
“India has been a superpower in agriculture … [but] there has been some ambiguity in terms of regulating the technology,” said Mr Nagappan, adding that biotechnology should be harnessed to meet rising food demand, a growing population, climate change and food securitisation.
“There’s a lukewarm rate of advancement in agricultural biotechnology,” he said. “India has already invested in public research. There are technologies in the proof-of-concept stage that have to be advanced.
“The primary challenge at this point in time is to assess the safety of genetically modified crops. It is important not to stop the technology, which is where the current problem lies.”
Other impediments for India’s biotechnology sector include a recent Supreme Court suspension of clinical trials for new drugs being developed by pharmaceutical companies.
But Mr Nagappan expects these hurdles would be overcome with time because New Delhi has been making significant efforts – such as instituting incentive structures – in helping to develop the industry.
The India Brand Equity Foundation notes that a proposal has been made to set up a national biotechnology regulatory authority to screen and approve all biotechnology-related products, and streamline the the drug approval process.
Furthermore, India has a five-year plan (2012 to 2017) to accelerate the pace of research, innovation and development of biotechnology.
Even so, Ernst & Young says India needs to work harder in improving the quality and quantity of biotechnology graduates to meet the industry’s demands.
Meanwhile, other Asian countries are also vying for their share of the lucrative market.
“India is already facing stiff competition from China, Korea, Singapore, and more recently Malaysia, in terms of attracting investments from MNCs [multinational companies],” said Ajit Mahadevan, a partner at Ernst & Young.
Mr Mahadevan says these countries have stronger technological and scientific competence, better infrastructure, tax and duty exemptions, and easier regulatory procedures.
As such, the Indian government needs to quickly enact regulatory reforms, develop infrastructure and provide more incentives to the biotechnology industry.
“The industry, on its part, needs to come up with a concerted action plan to utilise the available infrastructure and resources more efficiently and focus on nurturing innovation to take the biotech industry to new heights,” he said.
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The biog
Alwyn Stephen says much of his success is a result of taking an educated chance on business decisions.
His advice to anyone starting out in business is to have no fear as life is about taking on challenges.
“If you have the ambition and dream of something, follow that dream, be positive, determined and set goals.
"Nothing and no-one can stop you from succeeding with the right work application, and a little bit of luck along the way.”
Mr Stephen sells his luxury fragrances at selected perfumeries around the UAE, including the House of Niche Boutique in Al Seef.
He relaxes by spending time with his family at home, and enjoying his wife’s India cooking.
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Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
BEETLEJUICE BEETLEJUICE
Starring: Winona Ryder, Michael Keaton, Jenny Ortega
Director: Tim Burton
Rating: 3/5
UAE currency: the story behind the money in your pockets
The biog
Full name: Aisha Abdulqader Saeed
Age: 34
Emirate: Dubai
Favourite quote: "No one has ever become poor by giving"
The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
COMPANY%20PROFILE%20
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Haltia.ai%0D%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202023%0D%3Cbr%3E%3Cstrong%3ECo-founders%3A%3C%2Fstrong%3E%20Arto%20Bendiken%20and%20Talal%20Thabet%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%2C%20UAE%0D%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20AI%0D%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%2041%0D%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20About%20%241.7%20million%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Self%2C%20family%20and%20friends%26nbsp%3B%3C%2Fp%3E%0A
Greatest of All Time
Starring: Vijay, Sneha, Prashanth, Prabhu Deva, Mohan
The biog
Name: Salvador Toriano Jr
Age: 59
From: Laguna, The Philippines
Favourite dish: Seabass or Fish and Chips
Hobbies: When he’s not in the restaurant, he still likes to cook, along with walking and meeting up with friends.
Jawan
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Israel Palestine on Swedish TV 1958-1989
Director: Goran Hugo Olsson
Rating: 5/5
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Six pitfalls to avoid when trading company stocks
Following fashion
Investing is cyclical, buying last year's winners often means holding this year's losers.
Losing your balance
You end up with too much exposure to an individual company or sector that has taken your fancy.
Being over active
If you chop and change your portfolio too often, dealing charges will eat up your gains.
Running your losers
Investors hate admitting mistakes and hold onto bad stocks hoping they will come good.
Selling in a panic
If you sell up when the market drops, you have locked yourself out of the recovery.
Timing the market
Even the best investor in the world cannot consistently call market movements.
The biog
DOB: March 13, 1987
Place of birth: Jeddah, Saudi Arabia but lived in Virginia in the US and raised in Lebanon
School: ACS in Lebanon
University: BSA in Graphic Design at the American University of Beirut
MSA in Design Entrepreneurship at the School of Visual Arts in New York City
Nationality: Lebanese
Status: Single
Favourite thing to do: I really enjoy cycling, I was a participant in Cycling for Gaza for the second time this year
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THE SPECS
Engine: 2.0-litre four-cylinder turbo
Transmission: eight-speed automatic
Power: 258hp at 5,000-6,500rpm
Torque: 400Nm from 1,550-4,400rpm
Fuel economy, combined: 6.4L/100km
Price, base: from D215,000 (Dh230,000 as tested)
On sale: now