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Part - III

Following the phenomenal success of its information technology industry, India is fast emerging as an important player in the biotechnology sector in the Asia-Pacific Region. The large pool of scientific talent available at a reasonable cost, a wealth of R & D Institutions, rich bio-diversity, strong IT skills and an English speaking population has placed India favorably in the global market. A few years ago, India had only 30 biotech companies worth talking about. Today 160 companies with combined revenues of $150 million enable the Indian biotech industry to forge business links across the world (Source: Biospectrum-Able Biotech Survey, Sept 2003). In recent years, the sector has witnessed a notable growth in terms of new companies registered, larger product pipelines, increased patent filings and several product launches. But like elsewhere, the sector in India continues to face inadequate venture funding, high cost of infrastructure etc. Having said that, the government's support to form and fund research institutes through the Department of Biotechnology, and increased allocation of funding towards the development of biotech sector in the country is noteworthy, but certainly not sufficient.

The key success factors for the development of biotechnology industry in India are - R&D capabilities, IPR strength, Capital investments, available Product portfolio and diversity of the product portfolio, marketing strength of the companies and partnership with blue chip multinational corporations for technical as well as marketing initiatives. Indian biotech industry offers a gamut of opportunities due to the inherent demographic advantages of the country. These advantages range from the availability of low cost resources to biological diversity in the country. However, there are drawbacks, which act as major impediments in the overall growth of the industry. These blockages are - missing linkage between research and commercialization, Lack of venture capital funding, Low R&D spending, Low government support and low success in the global biotech market.

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* Contributed by -
Vivek Bajaj,
PGP 2,
IIM Indore.