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Biotech to get Rs 3 billion investments this year

Fakir Chand in Bangalore

Even as the Indian IT industry grapples to survive the continuing tech meltdown, its new counterpart, the bio-technology sector, is upbeat about its fortunes, thanks to the rapid developments and new findings in the emerging green industry.

As a key player in the new economy or the knowledge industry, the Indian biotech sector has become a favorite investment destination for foreign as well as domestic companies though the returns may take time with longer gestation periods.

According to the first Bio Survey of the nascent industry, conducted by the Confederation of the Indian Industry and Vision Group on Biotechnology, set up by the Karnataka government, the biotech sector in Karnataka alone will attract investments in excess of Rs 3 billion during this fiscal (2002-03) alone, sluggish economic conditions notwithstanding.

Giving an account of the survey, Vision Group chairperson and Biocon managing director Kiran Mazumdar-Shaw told about 500 delegates at the inaugural event of the Bangalore Bio-2002 on Monday that the Indian biotech industry was all set to witness dramatic progress and exciting developments in the years to come.

"If the Indian IT industry took a decade to emerge as a global player, the biotech sector is all geared up to reach such a goal in the next 5 years itself, with Karnataka taking the lead again," Mazumdar stated.

The survey revealed that a cumulative investment of Rs 5 billion in the Indian biotech industry during the last decade has generated total revenue of around Rs 7 billion, with exports alone crossing the Rs 2.5-billion mark. The sector has also attracted venture funding to the tune of Rs 700 million.

Ever since the first edition of the Bangalore Bio 2001 was held last April, Karanataka alone attracted as many as 10 national and international biotech companies, including the UK-based AstraZeneca to set shop in Bangalore and other parts of the state, with investments of Rs 2 billion.

"As a result of these continued investments and expansion of the existing companies, Bangalore has emerged as the 'Bio Cluster' in India," Mazumdar claimed.

With the government approving the commercial trials of Bt cotton recently, the industry is likely to reap the benefits of genetically modified crops and biotech applications in the farming sector.

Inaugurating the second edition of the three-day international conference-cum-exhibition, being held in the imposing Bangalore Palace Grounds, and organised by the Vision Group, with its main theme as 'Technology for Life', Karnataka Chief Minister S M Krishna said the state was glad to emerge as the leader in the nascent industry, with Bangalore being declared as the 'Bio Capital' or 'Knowledge Capital'.

"When I made my first Budget presentation in March 2000 and provided funds for the growth and development of the biotech sector in the state, cynics have remarked that IT and BT had no relevance to the masses, especially to the rural people, including millions of farmers.

Having witnessed the progress made by the industry and the state in the sector during the last two years, I am more than convinced that biotechnology is indeed the future of the new economy and has great impact on our rural population and the farmers as its discoveries and developments will improve the quality of their produce and their lives," Kriashna stated.

Citing the phenomenal progress China has been making in the biotech sector, especially since it began cultivating Bt cotton for commercial benefits successfully, Krishna said Indian farmers too would have been equally benefited, by now, had they been allowed to use Bt cotton by now.

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