Karnataka’s biotechnology economy has crossed $39 billion, marking a significant transition from a research-driven ecosystem to a full-spectrum biomanufacturing economy, according to the Karnataka BioEconomy Report 2025.
The report, compiled by the Karnataka Innovation and Technology Society (KITS) in collaboration with the Association of Biotechnology Led Enterprises (ABLE), was released by IT, Biotechnology and Rural Development Minister Priyank Kharge in Bengaluru.
Karnataka’s biotech economy reached $39.2 billion in 2025, contributing around 21% to India’s biotech economy and accounting for over 10% of the state’s Gross State Domestic Product (GSDP). The sector has grown from $31 billion in 2023, reflecting a cumulative growth of 26.5%.
Biopharma continues to anchor the ecosystem with over 40% share, valued at approximately $16.44 billion, driven by biologics, biosimilars, vaccines, and diagnostics. However, bioindustrial biotechnology has emerged as the fastest-growing segment at about $11.46 billion (29% share), led by fermentation-based industries, biofuels, enzymes, and sustainable materials—highlighting the state’s shift toward large-scale biomanufacturing.
BioServices accounts for nearly 25.8% of the BioEconomy, strengthening Karnataka’s global position in research services, digital health and innovation-led outsourcing, while BioAgri continues to support sustainable agriculture and input innovation.
The report also points to increasing regional diversification. While Bengaluru accounts for around 54% of the biotech economy, other districts are gaining ground. Mysuru contributes 8.7%, while Belagavi and Dakshina Kannada together account for over 9%, with northern districts emerging as an agri-biotechnology belt.
Karnataka added 218 new biotech startups in 2025, taking the cumulative tally to 1,451, with more than 75% focused on life sciences and health tech. Between January 2024 and October 2025, the state attracted $1.14 billion across roughly 40 investment deals spanning biopharma, medtech, precision fermentation, digital health, and agribio. The rising share of growth-stage funding reflects investor confidence in Karnataka’s scale-up capabilities.
“It is a matter of immense pride to release the Karnataka BioEconomy Report 2025, which reflects not just our growth in numbers but the structural transformation of biotechnology in our economy,” said Priyank Kharge. “With our BioEconomy crossing $39 billion and contributing over 10% to our GSDP, biotechnology is no longer confined to laboratories; it is now a central driver of economic growth, industrial innovation and societal impact.”
Dr Manjula N., Secretary, Department of Electronics, IT, Biotechnology & Science and Technology, said the combined impact of the Biotechnology Policy and Startup Policy is visible in expanded innovation capacity and industry investments. “Karnataka’s approach continues to prioritise end-to-end ecosystem development, from research to market adoption, while accelerating the State’s transition to a globally competitive biomanufacturing economy,” she said.
Rahul Sharanappa Sankanur, Managing Director, KITS, added that incubation, funding access and cluster development programmes have reduced barriers for biotech startups, while ABLE Honorary President GS Krishnan noted that the rapid expansion of biomanufacturing signals a sector moving decisively from research to global-scale production.
The government also reiterated its support for establishing an Innovation Park at C-CAMP, advancing a Centre of Excellence for Health and MedTech, and strengthening platforms such as Elevate NXT to back deep tech enterprises in biotechnology, genomics, AI-driven drug discovery, and climate biotech.
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