India biotech sector must boost original research to drive innovation

Its innovation pipeline has grown to more than 2,400 assets.

India's biotechnology sector must move beyond manufacturing scale and execution to produce more original scientific discoveries, as low research spending, limited specialist capital, and regulatory gaps constrain the development of homegrown innovations, analysts said

“The clearest signal is the contrast between India's disease burden and its participation in clinical research,” Priyanka Aggarwal, managing director and a senior partner at Boston Consulting Group and India and Southeast Asia healthcare practice leader, said in an emailed reply to questions.

India spends about $2b-$3b on pharmaceutical research and development, compared with $70b-$75b in the US, whilst its patent grant rate is about 40%, below China's 57%, according to a July 2026 report by Boston Consulting.

Aggarwal said researcher incentives remain focused on publications rather than inventions, whilst collaboration between academia and industry is still limited.

India's biotechnology sector has excelled in scale, process, and execution, but the next stage of growth requires greater focus on scientific discovery and turning research into commercial products, she said.

Government programmes have helped build some innovation capacity. Aggarwal cited the National Biopharma Mission's support for incubation centres and technology transfer offices, whilst the Biotechnology Industry Research Assistance Council has backed startups, intellectual property development, and technology projects.

She also cited public-private research facilities such as the Centre for Cellular and Molecular Platforms in Bengaluru and programmes such as BIRSA 101, which progressed from academic research through industry partnerships to clinical development and commercialisation.

China offers a benchmark for innovation output, Aggarwal said. Despite spending less on research and development than Europe and the US, China accounts for about 15%-20% of the global novel drug pipeline, supported by government investment, lower labour costs, and an integrated supply chain.

India's patent filings have increased more than fourfold in the past decade, according to Boston Consulting.

A faster regulatory system could generate the biggest gains for India's healthcare pipeline during the next 24 months, particularly for cell and gene therapies, mRNA treatments, and precision medicine, Aggarwal said.

She called for dedicated review teams, clear approval milestones, application tracking systems, and stronger project management capacity for new drug applications.

Ajay Mahipal, co-founder and general partner at HealthKois Investment Managers Private Ltd., said India's challenge stems less from a lack of scientific opportunities than from the maturity of its clinical development ecosystem, where the country has traditionally played a bigger role in patient recruitment and development work than innovation-stage research.

India's innovation pipeline has expanded to more than 2,400 assets from about 1,500 a decade ago, Mahipal said in an emailed reply to questions.

Only about 10%-15% of Indian venture capital firms have deep pharmaceutical or biotechnology expertise, compared with roughly 60% in the US, creating a gap in funding and evaluating long-term scientific projects, he said.

Mahipal said high-quality biological and clinical data would be critical for artificial intelligence-driven drug development.

Without changes in policy and capital allocation, India risks remaining a sophisticated development hub rather than becoming a global source of biotechnology innovation, he added.