How is FDI a Catalyst for Growth in the Indian Biotech Sector?
The biotechnology sector of India is a lot inventive and is on a strong trajectory for growth. India is considered among the top 12 destinations regarding biotechnology in the world and takes pride in being the 3rd largest destination for biotech in the Asia-Pacific region. FDI in the Biotechnology Sector in India is permitted 100% under the automatic route for greenfield pharma.
The country has the 2nd highest number of plants that are approved by the US Food and Drug Administration (USFDA), including 665 USFDA-approved plants located outside of the US, 44% of global Abbreviated New Drug Applications (ANDA), and over 1400 manufacturing plants in compliance with the World Health Organization.
The biotech industry of India consists of more than 2700 startups, which is expected to increase up to 10,000 by the year 2024. It is also expected that the Indian Biotech industry will reach the $150 billion mark by 2025.
The biotech sector of India has drawn a huge amount of attention in recent times and has now become one of the most important sectors for enhancing the global profile of India, along with making huge contributions to the growth of the economy.
An Ideal Opportunity for Investors
Among the upcoming markets, India is considered the ideal destination with a lot of opportunities available to be capitalized on without making a compromise regarding the quality, due to which major multinational pharmaceutical and biotech organizations worldwide are searching for suitable low-cost options in India’s biotech sector.
FDI in the Biotechnology Sector in India is permitted 100% under the governmental route regarding brownfield pharma.
India nurtures the best-in-class medical professionals and has a population that is willing to pay up funds for the finest foreign-made technologies and technologically advanced devices like cancer diagnostics, medical imaging, ultrasonic scans, etc.
Nearly 80% of the medical devices in India provide a unique opportunity for notable med-tech companies worldwide to import and invest in the country.
Rising for the Occasion
The biotechnology industry in India was valued at $64 billion in 2019 and is expected to reach $150 billion targets by 2024-25. It is further predicted that by the year 2025, the expected growth in the contribution of the biotechnology sector of India in the global biotechnology market will increase to 19% as compared to 3% in the year 2017.
FDI in Biotechnology Sector
The inflows of the FDI in the Biotechnology Sector in India were at $55.56 billion in 2015-16 from $60.22 billion in 2016-17, $60.97 billion in 2017-18, and the country registered the highest ever FDI inflow of $62 billion (provisional figure) during the financial year, 2018-19.
Moreover, more than $74 billion in investments were attracted by India across sectors during 2019-2020.
Consult with Our Experts
At FDI India, simplification of the complex structure regarding foreign investments and transactions under FDI is done via years of experience in the field. Our aim is to transform the face of the facilitation services of the FDI by keeping our focus on sustainable investments or loans in order to help the businesses of India.
FDI India is transforming the investment climate of the country by making the environment for business regarding investors simple. Its experts specialize in various states and sectors of India, handholding investors through their lifecycle of investment right from pre-investment to after-care.