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Part - VI

In the scientific community too, the claims and supposed potential of Indian biotechnology have been vigorously debated. Also, the Government Department of Biotechnology has often been criticized for allocating funds for unproductive, academic research.

Another point to be noted is that GM food is yet to be commercially introduced in India, it is expected to make its entry in the coming two or three years. Once that happens, many in industry fear that biotechnology (particularly agri-biotech) will suffer further setbacks, in the form of more accusations, controversies and unwarranted regulatory interventions.

Thus, public acceptance of BT (rather the lack of it) is another stumbling block for BT enterprises.

So What’s The Call?

The above factors clearly show that drawing parallels between the fortunes of BT and IT is not entirely justified. In fact, one of the laments of the BT industry is that investors, particularly VCs, do a great disservice to this new field by expecting the same kinds of returns, and over the same time horizons, as in the case of IT. When the two are juxtaposed, BT quite unnecessarily suffers.

The BT industry is undoubtedly starting to come into its own. It is currently growing at a rate of 25% year-on-year (ABLE-BioSpectrum survey). The stupendously successful IPO of Biocon has brought some much-needed limelight to this young industry. VC firms from the US and Europe have been recently doing the rounds of Indian BT companies, scoping for opportunities. Also, the strategic investments in BT by some big names from pharma, like Wockhardt, Nicholas Piramal, Dr. Reddy’s and Ranbaxy, are sure to benefit the growth of Indian BT. Further, research process outsourcing (RPO), contract research and clinical research opportunities are likely to come India’s way more and more, given our cost advantage and diverse human gene pool.

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* Contributed by -
Himanshu Rawat,
PGP 2003-05,
TAPMI, Manipal.
Published in Bi-annual Journal of TAPMI - 'Amartya'.