India: A Quad-led bio-manufacturing hub

Exam View: QUAD’s Critical and Emerging Technology Working Group; Bio-manufacturing; India’s National Biotechnology Development Strategy; Concerns and Solutions.

Context: India is an ideal choice for a Quad-led bio-manufacturing hub because of its existing infrastructure, pharmaceutical manufacturing expertise, and workforce.

Background:

In March 2021, the Quad set up a Critical and Emerging Technology Working Group related to developments in critical and emerging technologies, that included biotechnology to

• facilitate cooperation,
• monitor trends, and
• scout for opportunities.

Decoding the editorial

Bio-manufacturing:

• It uses living systems, particularly microorganisms and cell cultures, to produce molecules and materials on a commercial scale.
• It has the potential to transform the global industrial system, with up to 60% of physical inputs to the global economy expected to be producible using this technology.
• Many countries, including the United States and China have designed specific policies to shape their bio-economies.

India’s National Biotechnology Development Strategy:

• It envisions the country as a “Global Bio-manufacturing Hub” by 2025.
• The strategy sets a target of $100 billion for the hub.
• However, India’s ambitions require external support, particularly through its Quad partners, to enable its initial development.
• Complementary strengths:
  • The U.S. has significant funding capability.
  • Japan, Australia and the U.S. also possess advanced biotechnology innovation ecosystems and intellectual property.
  • India has
    • A skilled manpower,
    • The potential to provide affordable scale,
    • Economic potential,
    • Existing infrastructure, and
    • Pharmaceutical manufacturing expertise
  • According to the Australian Strategic Policy Institute, India is among the top performers in the field of bio-manufacturing in both the quality of research output and in the share among research publications.
  • India also has significant potential in low-cost bio-manufacturing, particularly in the production of enzymes, reagents, research materials, and equipment. According to at least one analysis, the cost of manufacturing in India is around 33% lower when compared to that in the U.S.

Concerns and Solutions

• Strengthening physical infrastructure
  • Concern:
    • India plans to increase fermentation capacity tenfold to 10 million litres in the next three to five years.
    • China has also expressed its intention to capture this market, similar to how it dominated small-molecule active pharmaceutical ingredients (APIs).
    • Concerns about China’s dominance in APIs pushed India to launch a production-linked incentive scheme that allocated $2 billion to the pharmaceutical sector to make biopharmaceuticals, APIs, key starting materials, and related products.
    • A dependence on China in the bio-manufacturing sector will be detrimental to both India and the Quad.
  • Resolution: The proposed bio-manufacturing hub in India can help
    • Facilitate technology transfer,
    • Connect investors, and
    • Establish a bio-manufacturing fund that is administered through the Quad, to support India’s efforts to reduce dependency on China.
  • Boosting workforce, lowering barriers
    • Concern: To scale up the bio-manufacturing sector, India needs to uplift its workforce quality.
    • Resolution:
      • Permanent training facilities can be established in universities around the Quad hub, with experts from other Quad countries providing the training.
      • Recent policy changes in India allow the establishment of foreign universities and can encourage scholar exchange programmes.
      • Training should also focus on commercialising research and development, a common challenge for non-U.S. countries in the Quad.
      • The bio-manufacturing hub can house all current bilateral government efforts and establish a research collaboration office for this purpose.
      • The hub can also harmonise language, regulations, and data-sharing regarding bio-manufacturing to secure supply chains for Quad nations and facilitate international collaboration.

The proposed hub in India can capitalise on the economic potential of the bio-manufacturing industry and address existing and potential vulnerabilities in the global system. India can become a leading player in the field of bio-manufacturing and help the Quad to compete in this key area.

Source:

https://www.thehindu.com/opinion/op-ed/india-as-a-quad-led-biomanufacturing-hub/article66878203.ece/amp/