The southern region fosters a vibrant startup ecosystem with 2,827 bio-based startups, 37 percent of India's total.
Representational image. (iStock)
Driven by innovation, a supportive ecosystem, and strategic investments, Southern India has emerged as the undisputed leader in India’s BioEconomy, a sector encompassing industries reliant on biological resources and processes. The five southern states – Karnataka, Telangana, Andhra Pradesh, Tamil Nadu, and Kerala – collectively contribute a staggering 45 percent to the nation’s BioEconomy, valued at $151.4 billion in 2023. Southern India emerges as a frontrunner in the BioEconomy landscape, marking a significant milestone in the region’s trajectory towards innovation and environmental stewardship.
The BioEconomy drives economic growth through biotechnological advancements, measuring value from basic biotech products. It spans life sciences, biotechnology, and technological innovation, encompassing sectors like Biomedical (including Therapeutics, Vaccines, Diagnostics, and Medical Devices), BioIndustrial (Biofuels, Bio-based Chemicals, Bio-based Plastics, Enzymes, and Microbes), BioAgriculture, and BioServices (offering tools, kits, software, databases, and specialized equipment). These segments represent products developed through rigorous research and innovation, shaping sustainable solutions for diverse industries.
Southern India’s dominance is evident in the regional breakdown. With $68.2 billion, the South accounts for almost half of the national BioEconomy, leaving the West (34 percent), Central (7.9 percent), and North (7.5 percent) far behind. Undoubtedly, the region has firmly established itself as a powerhouse driving the nation’s transition towards a bio-based economy, according to recent data from the Association of Biotechnology-Led Enterprises (ABLE).
Karnataka leads the pack with a staggering $31 billion BioEconomy, representing a commanding 45.5 percent share of the entire southern region. This dominance can be attributed to a well-developed research infrastructure, supportive government policies, and a thriving startup ecosystem.
Telangana follows closely with a $19.3 billion BioEconomy, contributing 28.3 percent to the region’s total. Its impressive 12 perent share of GSDP (Gross State Domestic Product) derived from the BioEconomy highlights its deep integration with the mainstream economy.
Andhra Pradesh, Tamil Nadu, and Kerala, while smaller states, still contribute significantly with $8.8 billion, $6.8 billion, and $2.3 billion, respectively, showcasing the widespread presence of the BioEconomy across the region. These states have leveraged their unique strengths and resources to drive innovation in bio-based industries, ranging from healthcare and agriculture to waste management and alternative fuels.
The region’s success in the BioEconomy is further complemented by its integration with the Gross State Domestic Product (GSDP) and vibrant startup ecosystem. Telangana leads with a 12 percent share of GSDP, closely followed by Karnataka at 11 percent, Andhra Pradesh (5 percent), Tamil Nadu (2%), and Kerala (2 percent), underscoring the symbiotic relationship between economic growth and bio-innovation. The BioEconomy’s impact extends beyond mere numbers. The southern states fared strongly while contributing only 4 percent to India’s overall GDP. This highlights the sector’s crucial role in driving regional economic growth and creating high-value jobs.
Moreover, Southern India boasts a burgeoning ecosystem of bio-based startups, with 575 startups established in 2023 alone. A vibrant startup ecosystem forms the bedrock of this southern BioEconomy boom. With 575 startups, the region boasts a third (32 percent) of India’s 1,776 biotech startups in 2023. This dynamic landscape reflects the region’s entrepreneurial spirit and commitment to driving transformative change through innovation.
Karnataka leads the pack with 202 startups, followed by Telangana (173), Tamil Nadu (107), Kerala (48), and Andhra Pradesh (40). Karnataka and Telangana jointly witnessed 65.2 percent of all startups in Southern India and over 21 percent of the national total. States with smaller populations also show promising growth, with Andhra Pradesh, Kerala, and Tamil Nadu collectively contributing over 23 percent of startups in the region. Karnataka alone accounts for nearly one in every eight startups in India, highlighting its significant strength in the ecosystem.
The cumulative startup base in South India for the calendar year 2023 totalled 2,827, with Karnataka leading significantly at 37.3 percent, followed by Telangana at 30.8 percent. Tamil Nadu accounted for 20 percent, Andhra Pradesh for 8.5 percent, Kerala for 3.1 percent, and Pondicherry for 0.3 percent.
These young companies spearhead innovation across diverse areas like biopharmaceuticals, bioagriculture, biofuels, and industrial biotechnology, fostering a dynamic and competitive landscape.
The cumulative startup base for 2023 across all regions in India amounted to 7,664 startups. Among these regions, the South emerged as the leader with 2,827 startups, followed by the West with 2,083 startups. The North region also exhibited significant startup activity, with 1,220 startups, while the Central and East regions reported 865 and 569 startups, respectively. The South region demonstrated the highest cumulative startup base, totalling 2,827 startups. Karnataka and Telangana emerged as key contributors, with Karnataka leading significantly at 1,054 startups, followed closely by Telangana with 872 startups. Tamil Nadu also exhibited notable startup activity, with 565 startups. Andhra Pradesh and Kerala contributed 239 and 88 startups, respectively, while Pondicherry accounted for nine.
The success of Southern India in the BioEconomy can be attributed to a combination of visionary leadership and strategic policy directions, robust infrastructure, and collaborative partnerships between government, academia, and industry stakeholders. Pioneering initiatives such as research grants, incubation centres, and policy frameworks have provided impetus to bio-based innovation and entrepreneurship.
Looking ahead, Southern India is poised to strengthen its position as a global hub for BioEconomy, focusing on scaling up sustainable solutions, enhancing cross-sectoral collaboration, and fostering talent development. The region is poised to lead the way towards a greener, more prosperous future by harnessing the full potential of bio-resources and cutting-edge technologies.
Southern India’s remarkable journey in the BioEconomy exemplifies the transformative power of innovation, resilience, and collective action. As the region continues to chart new frontiers in bio-based industries, it sets a compelling example for sustainable development and inclusive growth, inspiring other regions to embrace the BioEconomy revolution.
(Narayanan Suresh is COO, ABLE, and Srinivas Rao Chandan is Senior Editorial Consultant, ABLE. Views are personal.)
