Karnataka eyes tripling bioeconomy to $100 bn by 2030 with new biotechnology policy

At the launch, Kharge said, “We are thrilled to unveil the Karnataka Biotechnology Policy 2024-2029, which marks a landmark moment in our journey to establish Karnataka as a global biotechnology leader. The bioeconomy in Karnataka has experienced extraordinary growth, and the innovative and entrepreneurial spirit of startups has been significant in shaping the future of Karnataka’s bioeconomy.”

The Karnataka Innovation and Technology Society, operating under the Department of Electronics, IT, BT and S&T, spearheads this ambitious policy. The mission is to position the state as a leading global biotechnology destination by fostering a dynamic ecosystem that attracts top talent, builds world-class infrastructure, drives cutting-edge research and innovation, and promotes international collaboration, entrepreneurship, and inclusive economic growth.

Building on previous successes, the policy is designed to exponentially accelerate growth by aligning with existing policies while addressing the specific needs of the biotech sector.

Policy objectives

The policy objectives are multifaceted and aim to build on past achievements while strategically implementing new policies to drive growth in Karnataka’s biotechnology sector.

The key objectives are the following:

Strengthening biotech education: The policy emphasises skilling to enhance employability and entrepreneurship in the biotech sector. This will ensure that Karnataka develops a future-ready workforce capable of meeting the demands of a rapidly evolving industry.

Streamlining regulations: To attract investment and facilitate business, the policy aims to make it easier for startups and established companies to operate in Karnataka.

Supporting biomanufacturing: The policy aligns biomanufacturing activities with health, climate, and energy goals, enhancing food security and positioning Karnataka as a global biomanufacturing hub.

Supporting startups and mid-stage ventures: Early-stage biotech startups will receive continued support through funding and mentorship, while mid-stage ventures will benefit from growth facilities and market access. The policy also encourages preferential procurement of local biotech products.

Establishing regulatory sandbox: The policy introduces a regulatory sandbox to expedite the use of biotech innovations. This will enable quicker implementation of cutting-edge technologies, giving Karnataka a competitive edge in the global biotech market.

Job creation and skill development: The policy aims to create 30,000 high-quality jobs in the biotech sector by 2029. To support this, the state will partner with over 200 institutions to train 20,000 individuals in specialised biotech skills.

Fiscal incentives and concessions

A significant feature of the new policy is the array of fiscal incentives and concessions offered to startups, micro, small and medium enterprises (MSME), and large industries. These are designed to stimulate growth by reducing operational costs and encouraging innovation.

Startups will benefit from state GST reimbursement, marketing cost reimbursement, patent cost reimbursement, quality certification cost reimbursement, and support for incubation/acceleration centres, including one-time capital grants for establishment and upgradation or expansion.

MSMEs will receive similar benefits, with additional incentives such as prototyping cost reimbursement, interest subsidy, stamp duty exemption, land conversion fee incentive, and power tariff concession.

Large industries are also well catered for, with incentives including STP cost reimbursement, rainwater harvesting cost reimbursement, interest subsidy, land cost reimbursement, production-linked incentives, and more.

The policy places a strong emphasis on emerging biotech fields such as bio-agriculture, bio-industrial applications (including bio-energy and nutraceuticals), marine biotechnology, synthetic biotechnology, medical devices, and diagnostics. It also highlights the integration of artificial intelligence and machine learning in biotechnology, research on antimicrobial resistance, multi-omics for health, and the development of cell and gene therapies for rare diseases. Additionally, the policy ventures into space biotechnology.